Singapore NODX growth slowed to 1.1 percent in June, missing expectations

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Singapore’s non-oil domestic export (NODX) growth slowed sharply in June, rising just 1.1 percent on-year, compared with May’s 15.5 percent growth, missing analysts’ expectations amid a continued decline in electronics exports.

The Singapore dollar initially strengthened after the data, with the dollar/sing dropping as low as 1.3608, from levels around 1.3620 before the data. But the pair was at 1.3632 at 9:26 A.M. SGT.

Nomura said the June growth missed its forecast for a 5.5 percent increase and the consensus forecast for a 7.6 percent rise.

“As we expected, the strong exports of civil engineering equipment parts that boosted May NODX do not appear to have sustained,” Nomura said in a note on Tuesday, although it noted pharmaceuticals exports were still “robust,” growing 19.1 percent for the month.

But Nomura noted that electronics exports fell more than it expected.

Electronics NODX fell 7.9 percent on-year in June after declining 7.8 percent in May, led by ICs, parts of PCs and consumer electronics, it said. Non-electronics NODX grew 4.6 percent on-year in June, after expanding 26.2 percent in May, led by food preparations, pharmaceuticals and petrochemicals, it said.

NODX to most of Singapore’s top 10 markets declined in June, although shipments to the U.S., Indonesia, Hong Kong and the EU 28 increased, with declines led by trade with China, South Korea and Japan, it said in the Enterprise Singapore data release on Tuesday.

On a month-to-month basis, NODX for June fell 10.8 percent, after it grew 10.3 percent on-month in May, amid a decline in both electronic and non-electronic NODX, the statement said.

Total trade in June rose 10.3 percent on-year, extending May’s 9.8 percent rise, with total exports in June up 8.1 percent and total imports up 12.8 percent for the month, it said.

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