Sustained NODX rebound seen in second half of 2013

Based on latest manufacturing PMI readings.

Maybank Kim Eng notes that Singapore manufacturing PMI for new exports orders gained further to 52.8 in July 2013 (June 2013: 51.5) despite the slight dip in the subindex for electronics to 51.3 (June 2013: 51.7), suggesting the rebound in non-electronics NODX will continue in the next few months.

Meanwhile, the global composite PMI reached its highest level in 16 months of 54.1 in July 2013 (June 2013: 51.2), underpinned by robust global services PMI (July 2013: 54.9; June 2013: 51.1) amid a mild improvement in global manufacturing PMI (July 2013: 50.8; June 2013: 50.6), which hint at improvement in global economic condition – and thus external demand situation – as the country entered 2H 2013.