Singapore's November NODX figure may bring some relief

Singapore's November non-oil domestic exports (NODX) figure may bring some relief. The headline number due this Thursday morning is expected to register an expansion of 1.9% (YoY), up from a decline of 0.5% in the previous month. 

Weak global demand has been the main reason for the dreary export performance this year. For the first ten months of the year, overall NODX was up by a paltry 1.0% (YoY). Factors such as China's deceleration and the tepid recovery in the US were reasons behind the choppy global business environment and poor export performance. Though the depreciation in the SGD may have provided some valuation lift to the number, the drag from demand weakness has obviously dominated. 

But signs of bottoming-out are gradually taking hold. Although a strong improvement is still lacking, the PMIs of all key markets are showing some tentative stabilisations. A more pronounced improvement can be expected once the impact of Fed's monetary normalisation is fully digested by the markets and uncertainties revolving around China's deceleration are addressed. So for exporters, winter is coming but hopefully spring will follow.