Singapore’s NODX pace of contraction alleviates in April

In April, Singapore’s NODX contracted 7.9% y/y after shrinking 15.7% in March. The pace of contraction alleviated in April, underpinned by manufacturing exports as global inventory correction normalized in the month. Meanwhile, NODX continued to contract 8.3% on a three-month moving average year-on-year basis, as compared with the decline of 9% in March. On a sequential basis, the NODX grew 4.5% last month, after rising 0.1% in the prior month, with the help of non-electronic NODX growth and a flat growth in electronic NODX.

Product wise, non-electronic and electronic NODX fell last month by 8.1% and 7.4% respectively. Structures of ships and boats shrank 94.3%, while petrochemicals exports shrank 16.7%, both leading to the contraction of non-electronic domestic exports. Meanwhile, the electronic domestic exports contraction was mainly because of PCs, parts of PCs and ICs that contracted by 21.6%, 22.4% and 3.4% respectively. Most of the NODX exports from Singapore were concentrated in South Korea, Taiwan and Indonesia.

Singapore is likely to face a considerable headwind from China’s easing growth momentum and the likelihood of tapering its aggressive easing of monetary policy, noted ANZ in a research report. If Singapore continues to post disappointing or worsening export data, the possibility of downside risks to the economic growth will increase, added ANZ.