Here are 2 charts that prove Singapore manufacturing is on the mend

Export numbers are grinding northward.

According to DBS, local manufacturers have a lot to look forward to in the coming months. The external economic environment is improving. PMIs of key markets are picking up while export numbers are grinding northward (see Charts).

Here's more from DBS:

In fact, the improvement from China has been a key impetus in Singapore economic outlook in recent months. Headline non-oil domestic export (NODX) posted its strongest expansion (2.8% YoY in Oc13) in 12 months, driven largely by demand from China.

Indeed, NODX to China has averaged 19% per month between Aug-Oct13 and has outperformed export sales to the G3 and regional markets.

With China having done with its domestic consolidation and growth momentum picking up, this Asian giant will be an important driver for the manufacturing sector in 2014.

Moreover, economic conditions in the G3 are improving as well. Policy stimulus has lifted economic performance in Japan while Europe is out of recession.

Though it remains a long shot before sustained and buoyant economic growth returns in these two key markets, at least there is some glimmer of hope.

The US is still on the recovery path, albeit a slow one, which explains why the Fed is hesitant about tapering the QE. But at least the largest economy is the world is not facing significant downside risk in the immediate term and recovery remains on track.

On balance, 2014 will be a relatively better year for local manufacturers judging from the improved global outlook. The recent pickup in overseas orders will likely be sustained, thereby providing growth impetus to the manufacturing sector as well as the overall economy.