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Singapore's shipments to developed markets and China rose in July. Photo: AFP

Singapore’s exports to China and US rise, signalling recovery

Singapore’s exports in July fell less than expected as shipments to major economies picked up.

Singapore’s exports in July fell less than expected as shipments to major economies picked up, suggesting the manufacturing sector may have bottomed out on the back of an improving economic outlook in the United States and signs of resilience in China.

Non-oil domestic exports (NODX) eased 3.3 per cent in July from a year earlier, trade agency International Enterprise Singapore said today in a statement, beating a forecast of a 3.9 per cent slide in a Reuters poll.

On a month-on-month seasonally adjusted basis, NODX grew 2.5 per cent, above a forecast of a 1.0 per cent rise prediction.

Shipments to developed markets and China rose in July - a hopeful sign for the rest of the year.

NODX to the United States rose 8.6 per cent last month from a year earlier, after sliding 2.9 per cent in the previous month. Shipments to the mainland gained 7.0 per cent in July, compared to a 5.3 per cent rise in June.

Shipments to the European Union (EU) jumped 24.8 per cent in July from a year earlier. NODX to the EU in June declined 3.9 per cent.

Electronics exports in July fell 7.9 per cent from a year earlier, but the pace of decline slowed from a sharp 17.4 per cent contraction in the previous month.

Electronics is a key driver of Singapore exports, but the sector has been lagging regional peers such as South Korea and Taiwan due stiff competition and a lack of popular high-tech products including smartphones.

Over the past year or so, the sector has also come under hollowing-out pressure - manufacturing being moved from a high-cost, well-developed country to a cheaper, emerging-market location.

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