Non-oil domestic export growth to slip further amid weak global economy

PMI dipped into the red after 2 months of expansion.

The headline number for December 2014 is likely to report a benign increase of just 0.6% YoY, compared to 1.6% previously.

According to a report by DBS, non-oil domestic export growth for Dec14 is expected to moderate. On the margin, sales probably rose by about 2.0% MoM sa, also slower than the 2.9% expansion registered in the previous month.

DBS says that a worse than expected outcome should not come as a surprise. Latest Dec14 PMI dipped into the red after two consecutive months of expansion. The headline number recorded 49.6, down from 51.8 in the previous month and 51.9 in October. Any reading below 50 represents a contraction and vice-versa.

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