Singapore exports decline less than market expectations, trade outlook remains cloudy

Exports in Singapore declined during the month of September, falling less than what markets had initially anticipated, as outgoing shipments to China moderated during the period, while those to the Europe witnessed a rebound. However, the outlook for the highly trade-dependent economy remained shadowy.

Non-oil domestic exports last month slid 4.8 percent from a year earlier, data released by the trade agency, International Enterprise Singapore (IE Singapore) showed Monday, compared to the median forecast in a Reuters poll which for a 6.0 percent contraction.

Moreover, on a month-on-month, seasonally adjusted basis, non-oil domestic exports increased 2.4 percent in September, data showed, beating forecasts for a 1.5 percent expansion in the survey. Also, shipments to China fell 2.2 percent in September from a year earlier, compared with a 5.4 percent slump in August.

On the other hand, exports to the European Union expanded 9.9 percent last month from a year earlier, compared with a 15.6 percent decline in August. However, shipments to the United States shrank 7.2 percent in September on-year, after rising 4.8 percent in August.

In terms of product bifurcation, volatile pharmaceutical exports increased 16.2 percent, compared to a 17.9 percent decline in the previous month, while that of total electronics shrank in September by 6.6 percent from a year earlier after falling 6.0 percent in August.

"The bigger picture remains that particularly given that China's export falls were very unexpectedly weaker, the sense is that this is going to set the stage for a rather wobbly and fragile picture in the coming months," Reuters reported, citing Vishnu Varathan, Senior Economist, Mizuho Bank in Singapore.