Chart of the Day: Check out how exports to China are worsening

Non-oil domestic exports to the country fell 12.9%.

It’s easy to blame the declining total imports by China and lower crude oil price for the NODX slump, but Singapore’s manufacturing weakness was also a factor in the slip.

According to analysts from Maybank Kim Eng, China’s imports in the month slumped by a whopping 20.5% including imports of mineral fuels, lubricants and related material, reflecting lower crude oil price.

“But commodity price slump aside, the drop in imports also reflect the weakness in manufacturing activities as per the lower inbound shipments of ‘Machinery and Transport Equipment’ (Aug 2015: -8.5% YoY; July 2015: -4.5% YoY) and ‘Manufactured Goods Chiefly by Materials’ (Aug 2015: -21.3% YoY; July 2015: -14.2% YoY),” Maybank Kim Eng said.

China’s PMI also hit a six and a half year low in Sep 2015, as output plummeted at the quickest pace in three years as business conditions worsened and subdued demand prompted a reduction in purchasing activities, Maybank Kim Eng said.

“In tandem with the trend in China’s manufacturing PMI, Singapore’s manufacturing PMI hit a new low of 48.6 in Sep 2015 (Aug 2015: 49.3) indicating persistence manufacturing weakness and lackluster exports,” Maybank Kim Eng added.