[*StarDust*]

S'pore exports up 6.1%

SINGAPORE'S non-oil exports in July rose 6.1 per cent from the previous month on a seasonally adjusted basis, surprising analysts that were expecting a 2 per cent drop.

July non-oil exports fell 8.5 per cent from a year earlier, a smaller fall than a median forecast by analysts of an 11.5 per cent drop, as drugs exports jumped. This was the 15th month of annual contractions but the smallest drop since September 2008.

'It's a pretty encouraging improvement, a pretty strong improvement that is not just confined to exports within the Singapore economy,' said Robert Prior-Wandesforde, an economist at HSBC.

'The recovery in the second quarter is not a flash in the pan, clearly it was exaggerated by pharmaceuticals, but it represents the start of a genuine strong, sustainable recovery in Singapore.

'I do think we're going to see a very robust increase in third quarter GDP, it's looking more and more as though we're going to get another decent quarter of growth.'

Singapore's economy grew at an annualised rate of 20.7 per cent in the second quarter, pulling out of recession, but fell 3.5 per cent from the same period a year earlier, a slightly better performance than previously stated, final government data showed.

The central bank said last week it was comfortable with its monetary policy stance of zero appreciation for the Singapore dollar, warning second quarter growth may not be sustained. -- THOMSON REUTERS

Source: http://www.straitstimes.com/Breaking...ry_417861.html