Buckle up for a wild NODX ride: Maybank

"Volatile" exports performance foreshadowed as indicators like PMI go haywire.

Maybank said the inconsistent trend in short-term leading indicators will lead to "erratic trends in NODX in coming months." The comment came as the government revealed a NODX decline of 3.4%, its second consecutive month of contraction.

"Global manufacturing PMI remained at sub-50 for the fourth month in a row as of Sep 2012, highlighting the subdued global economy and external trade environment. Singapore's PMI for new export orders dipped to below 50 for only the second time this year in Sep 2012 (after Jan 2012) to 49.4 (Aug 2012: 50.4), but the PMI for electronics new export orders edged up to 52.5 (Aug 2012: 52.4)," noted Maybank Kim Eng.

"Meanwhile, the US manufacturing SM index rebounded in Sep 2012 to 51.5 from 49.6 in Aug 2012, underpinned by the jump in the new orders sub-index to 52.3 from 47.1, ending three straight months of sub-50 readings," it added.