Why tech exports won't recover in Q4

Growth drivers like external demand and wholesale trade remain weak overall.

In a new global research report, Bank of America Merrill Lynch said that tech exports will likely remain weak for the rest of the year. It noted how exports to Europe contracted 15.7% yoy while exports to the US fell 7.2%, pointing toward continued weak external demand.

Meanwhile, Singapore's Electronics PMI declined to 50.0 (still an expansion) in September from 50.7 in August. Even re-exports fell 3.4% yoy in September, suggesting wholesale trade remained weak, BofA Merrill Lynch said.

The gloomy outlook was made after Singapore's non-oil domestic exports (NODX) in September contracted 3.4% from a year ago, below consensus and BofA Merrill Lynch estimates, led by a deep plunge in electronics exports.