NODX down 14.6% in Q2

NODX is expected to fall by up to 9% by end-2019.

Non-oil domestic exports (NODX) contracted 14.6% YoY in Q2, extending the 6.4% decline from the previous quarter, data from Enterprise Singapore revealed.

This was attributed to decreased shipments of both electronic and non-electronic products.

Also read: NODX down 17.3% in June

Electronic NODX crashed sharply by 26.9% YoY in the second quarter, following the 17.2% YoY decline in Q1. ICs, disk media products and PCs contributed the most to the decline, falling by 32.2% YoY, 38.7%YoY and 15.9% YoY, respectively.

Non-electronic NODX also fell by 10.5% YoY during the quarter following the 2.6% YoY decrease in Q1. Civil engineering equipment parts, non-monetary gold and petrochemicals contributed most to the decline with 80.9% YoY, 32% YoY, and 15% YoY falls, respectively.

On a QoQ basis, NODX declined by 5% in the second quarter, larger than the 4.8% decrease in the previous quarter. Electronic NODX fell by 10.8% QoQ in Q2 from 16.8% QoQ decrease in Q1; whilst non-electronic NODX slipped 3.3% QoQ in Q2 after the 0.4% QoQ contraction in Q1.

Except for the US, NODX for all the top markets fell in Q2. Japan led the declines with a 28.7% YoY decrease, followed by the European Union (-17.5%) and China (-14.6%).

On the other hand, non-oil re-exports (NORX) rose for the sixth consecutive quarter with a 3.3% YoY rise in Q2 after a 4.1% YoY growth from the previous quarter, due to the higher shipment of both electronic and non-electronic re-exports.

Meanwhile, domestic oil exports contracted by 2.9% in Q2 following the 6.5% YoY decline during the previous quarter. Volume-wise, oil domestic exports inched up by 0.7% YoY in Q2 to slightly reverse the 8.3% YoY fall in Q1; whilst on a QoQ basis, exports expanded by 12.3% in Q2 after an 18.4% QoQ contraction in Q1.

According to Enterprise Singapore, NODX performed weaker than expected amidst a global electronics downcycle, sluggish global demand and trade issues. Lower oil prices due to weak global demand also weighed down on trade.

Due to expected moderation of global economic and trade growth, the board revised its 2019 growth projection downwards to a 2% to 3% YoY decline for total trade and an 8% to 9% YoY decline for NODX.