SINGAPORE -- Business conditions in Singapore's private sector improved in February after a sluggish start of the year, with the seasonally adjusted Purchasing Manager's Index (PMI) rising to 51.0 from January's 49.9, according to an S&P Global report released on Wednesday.

A PMI reading above 50 indicates expansion, while a figure below 50 signals contraction. While February's reading pointed to improvement, the report described the rate of expansion as "only modest."

Renewed expansions in output and new orders were observed, alongside stabilized purchasing activity. Business confidence also picked up. However, staff resignations led to a decline in employment levels, which, coupled with supply constraints, resulted in an accumulation of unfinished work.

On the price front, input cost inflation softened significantly, allowing selling prices to rise at their slowest pace in nearly four years.

Economics Associate Director at S&P Global Market Intelligence Jingyi Pan noted that while the PMI remained near the cycle low, the easing of inflationary pressures bodes well for new sales in the coming months.