While there was a bit of a base effect going on the underlying export story in Singapore remained very weak in June. Indeed, in some sectors – electronics – we’re looking at weakness not seen since the financial crisis, even if this sector is fundamentally a shrinking one as manufacturers continue to relocate offshore.
Another positive surprise on the wages front with a strong pick up in the headline data. The rebound in weekly wage growth was partly due to a more favourable hours worked comparison though. Hourly wage growth has been steadier. Alongside steady inflation means real income growth has improved, continuing the recovery we’ve seen in recent months.