Taiwan July export orders show solid growth

TAIPEI: Taiwan’s export orders grew faster than expected in July, despite worries about trade frictions, thanks to strong global demand for smartphones and other hi-tech electronic gadgets.

Orders for trade-dependent Taiwan rose 8% from a year earlier to US$41.8bil to a record high for July, Ministry of Economic Affairs data showed yesterday.

A Reuters poll forecast a 3.3% increase, and a month ago – when announcing a 0.5% contraction for June – the government predicted a 0.7%-3.3% July advance.

Taiwan’s export orders are a leading indicator of demand for Asia’s hi-tech gadgets and other shipments, and typically lead actual exports by two to three months.

“Orders for telecommunication, electronic and machinery products all hit record high for the month in value terms,” ministry official Lin Li-chen said.

She said the strong growth was attributed to a recovery in global demand for tech gadgets including laptop, smartphone and server.

The government forecast an increase of 2.5%-5% in August.

Demand in China, Taiwan’s biggest trading partner, is already slowing due to rising borrowing costs and a crackdown on riskier lending.

Orders from the United States, where Apple Inc is a major customer for major Taiwanese technology component makers, rose 8.4% in July from a year earlier. In June, they fell 4.3%.

Those from China increased 12.5% in July, compared with 5.8% the previous month. Orders from the European Union and Japan rose 6% and 2%, respectively. — Reuters