Chart of the Day: EU recovery boosted Singapore’s NODX

Exports to China remained soft.

Thanks to improving economic conditions in larger European economies, Singapore’s NODX is finally seeing better days.

According to a report by Maybank Kim Eng, by destination, growth was mostly skewed towards EU and US as shipments expanded by +56.2 YoY (Feb 2015: -2.8% YoY) and +19.0% YoY (Feb 2015: +7.5% YoY) respectively.

The increased demand from EU coincided with the improving economic conditions in larger European economies which have been registering positive numbers in terms of services PMI that indicates a recovery in domestic demand i.e Germany (Mar 2015: 55.4; Feb 2015: 54.7), Spain (Mar 2015: 57.3; Feb 2015: 56.2), France (Mar 2015: 52.4; Feb 2015: 53.4) and Italy (Mar 2015: 51.6; Feb 2015: 50.0).

Separately, economic data from the US whilst positive in general terms have come in mixed in recent weeks including the latest non-farm payroll which came in below expectations. Other dampeners was also retails sales data excluding gasoline in Feb 2015 which moderated to +4.3% YoY (Jan 2015: +6.6% YoY) which was the slowest pace recorded in over a year.

Meanwhile, NODX to China remained soft as it gained by +1.1% YoY (Feb 2015: -22.7% YoY) as the second latest economy continued to experience a slower rate of GDP expansion (1Q 2015: +7.0% YoY; 4Q 2014: +7.3% YoY) including the deceleration of industrial production (1Q 2015: +6.4% YoY; 4Q 2014: +7.6% YoY) and retail sales (1Q 2015: +10.2% YoY; 4Q 2014: +11.7% YoY). Softer domestic demand was also reflected in the slump of imports (1Q 2015: -17.6% YoY; 4Q 2014: +1.5% YoY).