UPDATE 2-Singapore's June non-oil exports fall 15.5% y/y, less than forecast
(Adds analyst comments in paragraphs 5, 6 and 11)
By Xinghui Kok
SINGAPORE, July 17 (Reuters) - Singapore's non-oil domestic exports fell 15.5% in June from a year earlier, official data showed on Monday, weighed down by declines in both electronic and non-electronic products.
Last month's fall compared with a Reuters poll forecast of an 15.8% drop, and extended the 14.8% contraction seen in May.
Singapore's economy narrowly avoided a technical recession like those seen in New Zealand and Germany, with second quarter preliminary estimates showing 0.3% growth on a quarter-on-quarter basis. The first quarter was a 0.4% quarter-on-quarter contraction.
A technical recession is defined as two consecutive quarters of contractions.
"Exports remain in the doldrums, with few signs of a meaningful turnaround," Maybank economist Chua Hak Bin said.
Chua expects contraction in manufacturing and exports to continue over the next few months. Singapore's industrial output in May fell 10.8% year-on-year in an eighth consecutive contraction.
On a month-on-month seasonally adjusted basis, non-oil domestic exports grew 5.4% in June, following May's 14.6% decline. That was lower than analysts' predictions for a 5.9% decline.
Non-domestic oil exports to Singapore's top 10 markets declined as a whole last month.
Exports to neighbouring Malaysia contracted 30.7% year-on-year last month due to lower shipments of integrated circuits, articles of plastic and specialised machinery.
Shipments to Indonesia declined 35.7% after drops in exports of petrochemicals, plastic plates and sheets and primary chemicals. Exports to China grew 3.1% in June after posting a 3.7% growth in May.
"China’s reopening is finally giving exports a modest boost," Chua said. (Reporting by Xinghui Kok; Editing by Martin Petty and Stephen Coates)
