Singapore July exports plunge sharply on decline in orders from major trading partners

Singapore’s exports plunged sharply in July, falling to four-month low as orders from major trading partners such as China, Indonesia and the United States dropped. Also, the Singaporean dollar fell as the trade report provided evidence of a slowing economy.

Non-oil domestic exports dropped 10.6 percent in July from a year earlier, worse than the revised 2.4 percent decline in June. A Bloomberg survey of 15 economists had estimated a median of 2.5 percent decline, data released by International Enterprise Singapore showed Wednesday.

Further, electronics shipments contracted 12.9 percent in July from a year earlier, while petrochemical exports fell 35 percent. Sales to China slid 17 percent, while those to the US declined 19 percent and shipments to Indonesia plunged 23 percent.

In addition, exports to China, Singapore's top overseas market, fell 16.6 percent in July from a year earlier, much more than a 9.9 percent decline in June, against the backdrop of a slowdown in China, with activity in July showing an underpowered economy. Moreover, shipments to the United States slumped 19.1 percent last month on-year, compared to a 5.9 percent increase in June.

Meanwhile, Singapore has cut its 2016 growth forecast after the economy witnessed a slow expansion in the second quarter. Despite weakness in the economy, the Monetary Authority of Singapore is reluctant for a second-round of easing after an unexpected move in April, when it set the rate of appreciation of the Singapore dollar's policy band at zero percent.

The Singapore dollar fell as much as 0.13 percent to SGD1.3418 against its U.S. counterpart after the report, set for its first decline in three days.