Singapore: Non-oil domestic exports increase at a milder rate in September
Latest reading: Non-oil domestic exports (NODX) growth slowed to 2.7% on an annual basis in September, following August’s 10.7% jump. In seasonally adjusted month-on-month terms, NODX exports increased 1.1% in September, contrasting August’s 4.7% decrease. Both readings surprised markets to the downside.
The annual NODOX deceleration reflected slower growth for both electionics and non-electronics. Looking at key export markets, NODOX to Hong Kong and the U.S. swung into contraction, those to Malaysia and Taiwan grew at a softer pace, and those to China were flat. On the other hand, exports to the EU rebounded, and shipments to Indonesia, Japan and South Korea posted stronger readings, providing some upward pressure.
Panelist insight: Commenting on the outlook for the sector, Nomura analysts Euben Paracuelles and Charnon Boonnuch stated:
“While growth in [integrated circuits] exports have been volatile in recent months, the underlying trend (i.e., on a 3-month moving average basis) shows a continued improvement that is now more consistent with the global chip cycle after lagging it earlier. In addition, new capacity coming on stream in the pharmaceuticals sector, which is now evident in the strong pickup in pharmaceuticals exports in September, will provide a further boost.”