Singapore exports saw feeble beginning to 3Q 2014

NODX and NORX data were disappointing.

The third quarter of the year has not started so well for Singapore exports, as Non-Oil Domestic Exports (NODX) and Non-Oil Re-Exports (NORX) data for July 2014 were disappointing, and NODX fell for the third month in a row while NORX slipped for the second time in the past three months.

According to a research note from Maybank Kim Eng, Non-Oil Domestic Exports (NODX) contracted for a third straight month in July 2014 by -3.3% (June 2014: -4.6% YoY).

From the previous month however, NODX reported back-to-back expansion of +5.8% MoM (Jun 2014: +2.6% MoM) while the seasonally adjusted measure came in at +2.5% MoM (s.a Jun 2014: +1.5% MoM).

Here’s more from Maybank Kim Eng:

YTD 2014, NODX narrowed its losses to -2.4% YoY compared to -7.9% YoY reported over the corresponding period in 2013.

Non-Oil Re-Exports (NORX) dipped for the second time in the last three months by -1.7% YoY (June 2014: +7.5% YoY).

Electronic NORX (Jul 2014: -0.1% YoY; Jun 2014: +6.4% YoY) marginally contracted as it was weighed down by telecommunications equipment, PC’s and consumer electronics.

Non-electronic NORX (Jul 2014: -3.3% YoY; Jun 2014: +8.7% YoY) also declined on account of aircraft parts, non-electric engines & motors and nickel.

Total imports slipped for the first time in six months due to lower incoming non-oil shipments (Jul 2014: -5.5% YoY; Jun 2014: +0.5% YoY) which made up 67% of total imports.

Oil imports separately managed to squeeze out growth of +0.9% YoY (Jun 2014: +1.9% YoY).

Net external demand still positive for growth. Trade surplus, despite narrowing to +SGD4.09b, rose by +22.6% YoY (Jun 2014: +SGD5.89b; +28.9% YoY), implying that overall, net external demand remain a positive contributor to GDP growth despite the disappointing figures on exports and imports.