Singapore's July NODX shrank by 0.7%

It was smaller than what analysts predicted.

According to UOB, Singapore’s July NODX contracted by a smaller than expected 0.7% (consensus = -2.9% y/y), better than the 8.9% contraction seen a month ago. The contraction was due to the larger decline in electronic exports (-7.6% y/y) that outweighed the expansion in non-electronic exports (+3.0% y/y).

On a seasonally-adjusted basis, NODX declined by 1.1%, worse than the 3.3% expansion seen in the previous month.

Here's more from UOB:

Electronics NODX had contracted for the 12th month in a row with the latest number in July, as segments such as parts of PC (-31.2% y/y), disk media products (-23.4% y/y), and ICs (-9.6% y/y) continued to decline.

NODX had contracted for the 6th consecutive month in July, declining 7.6% year-to-date. Assuming that the lower bound of the trade agency’s forecast comes true, it will imply an 11.3% y/y growth in NODX for the period Aug-Dec. Although we are expecting a cyclical recovery in global electronics demand in 2H13 to boost electronics exports, it will likely be a muted recovery, and we are thus penciling a growth rate of 8.5% y/y in the Aug-Dec period and will lower our full year NODX forecast from 2% to -1%.