DBS sees an upswing in December 2010 export figure

The bank has penciled in a 14.7% YoY rise into its forecast for the non-oil domestic export figure due today.

In a statement, DBS said the December number will be a reversal back to an upward trend after the October dip 10% YoY, -12.9% MoM sa) that it credited to the front-loading of Christmas season orders during the period.

The bank added that recent modest pickups in PMIs of key export markets are pointing to a steady growth pace in exports as global inventory levels and demand are gradually normalising.

It noted, however, that exports sales in the next two months will be volatile due to the Chinese New Year effect.

“Plants in China, who are key buyers for components and intermediate products, will typically go into a lull period during the festive season... and that will certainly affect overall export performance,” DBS said.