Singapore's non-oil domestic exports rose 2.7 percent on the year in September after increasing 10.7 percent in August and rose 1.1 percent on the month after a previous decline of 4.7 percent. Imports rose 0.9 percent on the year in September after advancing 1.5 in August and rose 1.5 percent on the month after dropping 2.6 percent previously.

Exports of electronics products increased 4.0 percent on the year in September after surging 35.1 percent in August, while year-on-year growth in exports of non-electronic slowed from 3.6 percent to 2.3 percent. Performance was mixed across major trading partners. Exports to China were flat on the year, exports to United States and Japan fell, and exports to the European Union and South Korea recorded strong growth.

Singapore publishes monthly data (both in nominal and real terms) for the current and previous two months, cumulative-to-date data on imports and exports by country of origin and destination, as well as monthly seasonally adjusted trade data. Imports refer to goods brought into Singapore irrespective of whether they are for consumption, for processing, for use in manufacturing, or for subsequent re-shipment to other countries/areas. Exports refer to goods brought out of Singapore. They comprise domestic exports and re-exports. Data are also disseminated on imports broken down by country of origin and domestic exports and re-exports broken down by country of destination.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they also affect currency values in foreign exchange markets. However, the foreign exchange impact is muted here given that Singapore’s currency is managed by the central bank.

Imports indicate demand for foreign goods and services in the local economy. Exports show the demand for local goods in countries overseas. Movements in the trade balance directly affect GDP growth because of the Singapore’s dependence on trade. Stronger exports are bullish for corporate earnings and the stock market. The bond market is also sensitive to the risk of importing inflation.

This report also gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.