Singapore-made exports rose 1.7% in September
Singapore-made exports rose 1.7% in September
SINGAPORE (Bloomberg): Singapore-made exports, closely watched for the health of the island's economy, unexpectedly rose 1.7 percent year-to-year in September as European orders offset shriveled demand from recession-torn Asia.
Even so, an economic recovery isn't in sight. Electronics exports, which account for two-thirds of Singapore-made goods, fell 1.2 percent to S$5.85 billion (US$3.59 billion). Total imports plunged 19 percent to S$14.07 billion.
``As in preceding months, the sluggish performance was due to lackluster market conditions for electronics and related products as well as fallen demand from Asian economies hit by the financial crisis,'' the Trade Development Board said on Tuesday.
Rising sales of Singapore-made goods abroad is critical to economic recovery in the export-driven city state. Singapore's trade is more than three times its gross domestic product. The economy is expected to shrink in the second half, the first contraction since the 1985-1986 recession.
Non-oil exports rose to S$8.59 billion as sales to Europe jumped 24 percent. This offset sharp declines to Asian markets -- a 10 percent decline for Japan, 23 percent for Hong Kong and China, 27 percent for Thailand and 16 percent for South Korea. Asian markets account for about 40 percent of Singapore's exports.
Economists polled by Bloomberg had expected a 4.1 percent decline in Singapore-made exports in September from a year earlier.
Both stocks and currency declined on the trade report.
The benchmark Straits Times Index pared earlier gains to 1121.6 points at the midday pause in trading, a rise of just 0.18 percent from an earlier 1.8 percent gain. The Singapore dollar fell to 1.618 a dollar, from its Asian close of 1.6155 yesterday.
With the overall ``weak trend'' in exports ``it's too premature to proclaim a recovery,'' said Andy Tan, an economist and general manager at MMS International, the financial services unit of Standard & Poor's Corp.
The September non-oil trade number translates to shipment value of US$4.98 billion based on the average exchange rate of 1.7236 to the U.S. dollar in September. That's an 11 percent decline in dollar terms from US$5.568 billion a year ago.
The increase, though unexpected, marked a seasonal surge in European Christmas orders. Typically, electronics companies in Europe shut for summer holidays in July and part of August, before increasing production in September.
Still, the increase in shipments to Europe was not matched by demand from the U.S. Exports to the U.S. plummeted 5.1 percent to S$2.5 billion. As exports to Europe and the U.S. make up just over half of Singapore-made exports, sustainable orders from the U.S. is key for the economy.