Singapore Exports Unexpectedly Fall; Europe, U.S. Sales Decline

Singapore's exports unexpectedly dropped in March, posting the biggest decline in 13 months, as pharmaceutical companies and electronics manufacturers shipped fewer goods to customers in the U.S. and Europe.

Non-oil domestic exports fell 5.9 percent from a year earlier following a revised 6.2 percent increase in February, the government's trade promotion agency said in a statement today. Economists expected a 0.4 percent gain.

Manufacturers in Singapore and across Asia are facing slower demand for their products amid signs the U.S., the region's largest export market, is heading for a recession. The World Bank this month said global trade volumes are expected to climb between 4 percent and 5 percent this year, compared with a 7.5 percent increase in 2007.

``Electronic exports are still fairly weak,'' said Ho Woei Chen, an analyst at United Overseas Bank Ltd. in Singapore. ``We expect U.S. growth to be better only later in the year, so export demand will remain moderate until then.''

Pharmaceutical shipments dropped 34.1 percent last month from a year earlier, after gaining 7.6 percent in February. Drug shipments were valued at S$1.62 billion ($1.2 billion) in March, compared with S$1.67 billion the month before.

Non-electronics shipments, which include petrochemicals and pharmaceuticals, fell 4.2 percent from a year earlier. Petrochemical exports declined 11.8 percent in the same period, today's report showed.

Computer Chips

Electronics shipments slid 8.5 percent in March from a year earlier, the 14th consecutive drop, following a revised 2.4 percent decline in February. Sales of electronics products were worth S$5.4 billion last month compared with S$5.1 billion in February.

Singapore's semiconductor shipments declined 6.9 percent from a year earlier after sliding a revised 3.6 percent in February. Disk-drive exports rose 1.3 percent in March.

Overseas sales fell a seasonally adjusted 2.6 percent last month from February, when they dropped a revised 1.4 percent, today's report showed. Economists expected a 1 percent gain.

Sales to the European Union, Singapore's largest overseas market, fell 23.7 percent in March. Shipments to the U.S., its second-biggest market, dropped 27.5 percent, while exports to China decreased 6.2 percent in March.