Markets could be in for a reality check

July has been a month of unusually good news. It began with the astounding jump in GDP growth figures for the second quarter, which saw economists quickly revise full-year growth estimates upwards. Then, last week, property data confirmed that Q2 2009 was one of the best performing on record, with the number of new home sales exceeding those for the whole of 2008. The Housing and Development Board’s resale price index also reached an all-time high in the quarter. Industrial production was down in June, but the NODX rose by 7.6 per cent in quarterly terms. And the Singapore stock exchange has also rebounded nicely.