NODX to clock in 5% growth in 2017

After contracting for a second straight month in May.

Singapore's non-oil domestic exports are expected to register an annual growth of 5% this year, OCBC Bank said.

For the month of May, NODX contracted for the second straight month by 1.2% yoy. April NODX was also revised down to -0.8%.

"Note that the May 2016 base was relatively high at +11.6% yoy vis-à-vis April 2016 at -7.9% yoy," OCBC Bank said.

The electronics exports expanded for the 7th consecutive month by 23.3% YoY in the said month and offset weakness in non-electronics exports.

Industrial production also decelerated for the second month to 5.0% yoy (-3.5% mom sa) in May, dragged down by biomedicals cluster (-22.2% yoy), whereas electronics outperformed with +35.1% yoy.

"This skewed, two-tiered manufacturing performance looks set to linger in 2H17," OCBC Bank said.