Expert points to ‘payback effect’ as cause of weaker NODX in February

In February, NODX slipped by 0.1% YoY.

Despite experiencing a slip in non-oil domestic exports (NODX) in February, experts still expect a “strong rebound” in Singapore's manufacturing output,  led by the global tech turnaround.

“The weaker-than-expected NODX growth data in February were driven by a payback effect after the one-off surge in exports of machinery and a large swing in food preparation,” Nomura said.

“With electronics export growth continuing to improve amid the global tech upturn, we believe underlying NODX momentum remains strong and should continue to improve in coming months,” Nomura added.

Given the anticipated rebound in manufacturing output, Nomura maintains an optimistic view of Singapore’s GDP growth, expecting it to reach the higher end of the official forecast at 3.0%.
 

READ MORE: Non-oil domestic exports slip by 0.1% YoY in February