Export orders get holiday season boost
Taiwan’s export orders rose for the first time in 15 months in November as shoppers in the United States and mainland China ramped up their purchases in the run up to the end of year holiday season, but the government forecast growth would contract again in December.
Export orders last month edged up by 1 per cent from a year ago to US$50.63 billion, missing average analyst forecasts of 4.3 per cent growth in a Reuters poll. Orders fell by 4.6 per cent year on year in October.
Orders for goods from the island, home to tech giants such as chip manufacturer Taiwan Semiconductor Manufacturing Company, are a gauge of global technology demand.
The Ministry of Economic Affairs said it expected export orders in December to contract between by 4.2 per cent and 8 per cent from a year earlier.
Export orders should get a boost from the traditional end of year holiday shopping season in Western markets, the ministry said, while also noting that the wars in Ukraine and Israel, inflation and increased interest rates “may inhibit the momentum of global trade growth.”
Weak demand for Taiwan’s technology products amid global economic uncertainty has prompted the government to forecast that the economy will grow at its slowest pace in 14 years in 2023.
Orders in November for telecommunications products gained 10 per cent and electronic products jumped 3.5 per cent from a year earlier, the ministry said.
Orders from mainland China climbed by 8.8 per cent, compared with a 1.2 per cent rise in the previous month. Orders from the US fell by 2.4 per cent versus a 1.4 per cent dip in October. Orders from Europe dropped by 21.1 per cent, better than October’s 45.8 per cent plunge.