Disappointing August NODX results reveal one bright spot

Re-exports on a sustained growth path.

NODX surprised on the downside in August 2013, according to Maybank Kim Eng, as it fell by -6.2% YoY on account of lower shipments of both electronics and nonelectronic products, declining 9.2%YoY and 4.7%YoY, respectively.

From the previous month, NODX fell for the first time in two months by -7.6% MoM. NODX in the first eight months of 2013 dropped by -7.7% YoY compared to +2.8% YoY increase reported over the corresponding period last year.

Despite these disappointing numbers, led by a slide in electronics, domestic manufacturing purchasing managers index (PMI) continues to paint a positive picture…for non-oil re-export (NORX), noted the research firm.

Despite the fall in NODX, Singapore’s non-oil re-export (NORX) expanded for the fifth successive month at +14.4% YoY in Aug 2013 (July 2013: +8.1% YoY).

Singapore’s manufacturing PMI for new exports orders in Aug 2013 picked up to 53.4 (July 2013: 52.8) with its sub-index of new exports order for electronics jumping to 54.0 (July 2013: 51.3).

This coincided with improved global manufacturing PMI which gained to 51.7 (Jul 2013: 50.8), while global services PMI improved to 56.1 (Jul 2013: 54.9).