Singapore: Non-oil domestic exports (NODX) contract in October
Non-oil domestic exports (NODX) fell 5.6% year-on-year in October (September: +3.1% year-on-year), the first contraction since late 2020 and below market expectations. This was driven by lower exports to China, the EU and Malaysia, with both electronics and non-electronics exports declining. The reading was partly dampened by a tough base of comparison.
In seasonally-adjusted month-on-month terms, NODX exports declined 3.7% in October, compared to Septembers 3.9% decrease.
Commenting on the release, Alvin Liew, senior economist at UOB, stated:
“The cracks in the export outlook became more visible now with the first y/y NODX contraction in nearly two years. The worsening electronics performance, and increasingly weaker demand from more top export destinations, especially China, are clearly weighing negatively on NODX momentum and manufacturing demand. Our full-year NODX growth forecast for 2022 is now lowered to 4% from previous forecast of 5% as we factor in a sharper slowdown in NODX, and a very unfavorable high base effect for the rest of 2022.”