Find out why analysts don’t have high hopes for tomorrow’s NODX print

The figure won’t be a cause for joy.

Non-oil domestic exports figures are expected to register a 3.8% year-on-year uptick when official results are released tomorrow, but analysts warn that the perceived growth is no real cause for celebration.

According to DBS, the year-on-year uptick is caused by a low base in the same period last year. DBS notes that while the recovery in the US is gaining strength, the outlook in the Eurozone and Japan is worsening, and even China’s growth pace appears to be stuttering.

“There is just a complete lack of positive catalyst in the global economy to drive growth and demand, except perhaps for the falling oil prices. That said, the decline in oil prices could well be due to the weak demand although some degree of over-supply probably has exacerbated the slide. On the margin, things are merely moving in a sideway manner as what we had predicted since the start of the year. It has been a dull year. Expect NODX to rise by a mere 0.8% on a month-on-month seasonally adjusted basis. There's nothing to cheer about except that this corroborates with the tepid growth trajectory in the global economy,” noted DBS.