Singapore: Non-oil domestic exports fall in October
Latest reading: Non-oil domestic exports (NODX) contracted to 4.6% in annual terms in October, swinging from a downwardly revised 0.9% rise logged in September and falling far short market expectations. In seasonally adjusted month-on-month terms, NODX exports fell 7.4% in October, following a downwardly revised 0.6% decrease in September.
The downside surprise was chiefly driven by a sharp contraction in non-electronics, which outweighed a rebound in electronics. Looking at key export markets, on the one hand, NODX to the EU and Indonesia swung into contraction, those to China and Japan contracted at a sharper pace and shipments to South Korea grew at a slower pace. On the other hand, exports to the U.S. rebounded, and those to Taiwan posted stronger readings, limiting the fall.
Panelist insight: Commenting on the outlook for the sector, Nomura analysts Euben Paracuelles and Charnon Boonnuch stated:
“Our more optimistic [GDP growth] forecast is underpinned by our view that the global tech turnaround will significantly boost manufacturing output. Importantly, integrated circuits exports still look consistent with the uptrend in the global chip cycle. In addition, new capacity coming on stream in the pharmaceuticals sector should provide a further boost and suggests the decline in pharmaceuticals exports in October was temporary.”