Philippine exports appeared to have contracted faster at -2.9 percent year on year in February as shipments of electronics failed to recover as expected, according to data from DBS Group.
The slide in exports last February could have been worse than that of the previous month. In January, exports slowed down by -2.7 percent from that of the same month the previous year, DBS reported.
But in monthly terms, the export performance in January translates to an increase of 7.2 percent, the financial services provider said in a research note.
“Beyond the short term, however, it is still too early to say that a full-fledged electronics recovery is underway,” DBS said. “Notably, a similar trend had also emerged in early 2012 before bookings tapered off sharply in July. Better traction in the global economic recovery will be needed for this improvement to be sustained.”
Last month, DBS said electronics shipments could boost Philippine exports in the coming months, although a strong recovery in the sector would not be likely.
The bank based this outlook on bills for United States-bound electronics shipments, which exceeded the volume of orders in January and February, after seven consecutive months of weak demand.
The Singapore-based bank noted that the value of Philippine electronics export fell to $1.5 billion in January after peaking at $3.5 billion in September 2010.