Singapore June exports seen falling from a year ago

Singapore's non-oil domestic exports are expected to fall on an annual basis in June for the second straight month, a Reuters poll showed on Tuesday, adding to signs of a slowdown in the city-state's manufacturing activity. -- ST PHOTO: LAU FOOK KONG
Singapore's non-oil domestic exports are expected to fall on an annual basis in June for the second straight month, a Reuters poll showed on Tuesday, adding to signs of a slowdown in the city-state's manufacturing activity. -- ST PHOTO: LAU FOOK KONG

SINGAPORE (Reuters) - Singapore's non-oil domestic exports are expected to fall on an annual basis in June for the second straight month, a Reuters poll showed on Tuesday, adding to signs of a slowdown in the city-state's manufacturing activity.

The median forecast in the survey of 12 economists showed non-oil domestic exports in June were expected to have fallen 2.3 per cent from a year earlier, following a 6.6 per cent drop in May.

A recent survey by the Singapore Institute of Purchasing & Materials Management showed that the city-state's manufacturing activity grew in June but at the slowest pace in five months due to weak new orders.

In addition, the government's advance estimate of second-quarter gross domestic product released on Monday showed that Singapore's economy contracted in April-June for the first time in nearly two years, hit by a sharp drop in manufacturing activity.

On a month-on-month and seasonally adjusted basis, non-oil domestic exports are seen rising 4.0 per cent in June, getting some respite after tumbling 7.5 per cent in May.

Singapore's non-oil domestic exports are seen likely to increase this year after having fallen 6.0 per cent in 2013, buoyed by an expected improvement in US and European economic growth. Exports, however, have struggled to gain traction in recent months, partly due to weakness in electronics shipments.

Electronics is a key driver of Singapore's exports but its manufacturers are not as well positioned in the electronics supply chain to gain from growth in demand for smartphones and tablets, compared to peers in South Korea and Taiwan.