Singapore exports grow faster than expected +34.5% on year vs downwardly revised +22.6% in August, signals 4Q trade, manufacturing off to a “decent” start, though growth momentum may slow, says CIMB economist Song Seng Wun.

“As fears of a double dip recede, there is a rush to fill the shelves ahead of the holiday season. The data show that while growth momentum is slowing, you do get flashes here and there,” Song says. 

 

Adds, semiconductors, pharmaceuticals numbers remain strong, but expects pharmaceuticals to dip on plant maintenance shutdowns in coming months. 

 

Strong shipments may act as booster to 2H growth of export-dependent Singapore, easing of growth likely to be less sharp than previously estimated, Song says.