Wednesday, 17 August 2016
SINGAPORE — The Republic’s non-oil domestic exports (NODX) contracted by 10.6 per cent year-on-year in July, amid an uncertain global landscape as exports to China and the US also fell.
The figure was far worse than the median forecast of a 2.5 per cent slump in a Reuters poll.
In June, Singapore’s NODX data also saw a 2.3 per cent year-on-year fall, reversing the 11.6 per cent growth seen in May, showed data released on Wednesday (Aug 17) by trade agency International Enterprise (IE) Singapore. On a month-on-month seasonally adjusted basis, NODX decreased by 1.8 per cent, following the previous month’s 13.0 per cent contraction, due to a decline in both electronic and non-electronic exports.
On a year-on-year basis, electronic NODX contracted by 12.9 per cent in July, following the 1.7 per cent decline in the previous month. The decrease in electronic domestic exports was largely due to PCs (-36.0 per cent), parts of ICs (-46.3 per cent) and diodes & transistors (-19.5 per cent).
Shipments of non-electronic products also decreased by 9.5 per cent in July, after the 2.6 per cent contraction in the previous month. The decline in non-electronic NODX was led by petrochemicals (-35.0 per cent), civil engineering equipment parts (-58.3 per cent) and specialised machinery (-16.7 per cent).
NODX to all of the top 10 NODX markets, except the EU 28, decreased in July. The top contributors to the NODX contraction last month were China, the US and Indonesia.
NODX to China decreased by 16.6 per cent in July, following the previous month’s contraction of 9.9 per cent. NODX to the US decreased by 19.1 per cent, compared to the 5.9 per cent growth in the preceding month.
Economists have warned that prospects for Singapore’s manufacturing sector remain patchy, despite the growth seen in May.
Last month, DBS senior economist Irvin Seah said: “The surge in May was never meant to last. It was largely due to a spike in some unusual export products, which is unlikely to be sustainable.”
UOB economist Francis Tan, however, noted last month that the NODX reading in the second half of this year may improve due to the relatively low year-ago comparison and other “green shoots”, such as the expansion in Singapore’s industrial output.
“Industrial production has been expanding,” he said. “It’s a good sign that manufacturers are busy producing. Hopefully that will translate into better exports. But all things considered, it’s still not a story of strength in the manufacturing sector.”
Source by: TODAYonline