Singapore's non-oil domestic exports shrink 1.5% in October, on track for full-year decline

Singapore's non-oil domestic exports fell 1.5% in Oct on a year-on-year basis in contrast to the 0.9% growth in the previous month. -- PHOTO: ST FILE
Singapore's non-oil domestic exports fell 1.5% in Oct on a year-on-year basis in contrast to the 0.9% growth in the previous month. -- PHOTO: ST FILE

Singapore's non-oil domestic exports (NODX) fell 1.5 per cent last month on a year-on-year basis, in contrast to the 0.9 per cent growth in the previous month, due to a decrease in both electronic and non-electronic shipments, International Enterprise (IE) Singapore reported on Monday.

The figures were in line with consensus forecasts by economists.

On a year-on-year basis, NODX to Singapore's top 10 export markets, except Thailand, South Korea, Taiwan, Japan, the EU 28 and China, declined in October 2014, IE Singapore said.

The top three contributors to the NODX contraction in October 2014 were Hong Kong, Indonesia and Malaysia.

On a month-on-month seasonally adjusted basis, NODX rose by 1.1 per cent in October 2014, in contrast to the previous month's 8.8 per cent decline.

On a year-on-year basis, non-oil re-exports (NORX) contracted by 5.4 per cent in October, compared to the 4.2 per cent rise in the previous month, due to a decrease in both electronic and non-electronic goods.

Singapore's non-oil exports tend to be volatile because a significant portion comprises pharmaceuticals and oil rigs that can vary sharply from month to month.

UOB Global Economics and Markets Research highlighted in a note that exports of electronics have falled for the 27th consecutive month, after a 3.6 per cent year-on-year decline in October.

UOB said it maitains its forceast that NODX for the full year will drop 1.0 per cent as the electronics sector continues to falter. "Our 1 per cent contraction NODX forecast in 2014 implies that overall NODX growth in the Nov-Dec period will contract 0.2 per cent year-on-year".

IE Singapore has forecast that Singapore's 2014 NODX will fall 1 to 2 per cent this year.