Com­mer­cial rev­enue down slightly in March, says MOEA

The China Post - - LOCAL -

Com­mer­cial rev­enue in Tai­wan fell slightly in March from a year ear­lier largely due to fall­ing sales in in­for­ma­tion tech­nol­ogy prod­ucts to Ja­pan, ac­cord­ing to the Min­istry of Eco­nomic Af­fairs (MOEA).

Statis­tics com­piled by the MOEA showed that com­mer­cial rev­enue, which is com­prised of the re­tail, whole­sale and dining ser­vices sec­tors in Tai­wan, fell 0.7 per­cent year-on-year in March to NT$1.18 tril­lion ( US$38.06 bil­lion), af­ter a 0.9 per­cent in­crease in Fe­bru­ary.

Af­ter sea­sonal ad­just­ments, sales of the lo­cal com­mer­cial sec­tor for March fell 0.8 per­cent from a month ear­lier to NT$1.20 tril­lion, the data in­di­cated.

The MOEA said that with ship­ments of note­book com­put­ers and flat panel TVs to the Ja­panese mar­ket on the decline, rev­enue posted by the lo­cal whole­sale sec­tor un­ex­pect­edly fell 1.5 per­cent year-on-year to NT$829.3 bil­lion in March.

The MOEA said that the Ja­panese yen’s de­pre­ci­a­tion has led to a drop in or­ders placed by buy­ers in Ja­pan for Tai­wan’s IT de­vices, while some Ja­panese IT mak­ers dropped out of the mar­ket, which also im­pacted the coun­try’s pur­chases from Tai­wan.

The min­istry said that at the same time, a fall in steel prod­uct prices dragged down sales of the build­ing ma­te­rial ven­dors, which was also cited as a cause for the de­crease in March’s whole­sale rev­enue.

In that month, rev­enue posted by the lo­cal re­tail sec­tor rose 1.3 per­cent from a year ear­lier to NT$315.5 bil­lion, the high­est March fig­ure ever recorded, as sales in en­ergy ef­fi­cient home ap­pli­ance sup­pli­ers, on­line ven­dors, depart­ment stores and su­per­mar- kets reg­is­tered gains, the MOEA said,

In the dining ser­vices sec­tor, sales for March rose 1.9 per­cent from a year ear­lier to NT$34.3 bil­lion af­ter some restau­rant chains made ef­forts to ex­pand their net­works. March was the sec­ond con­sec­u­tive month for the sec­tor to re­port year-on-year sales growth.

In terms of the first quar­ter of this year, com­mer­cial rev­enue in Tai­wan to­taled 3.47 tril­lion, down 0.1 per­cent from a year ear­lier. Sales in the whole­sales sec­tor reached NT$2.37 bil­lion, down 1.0 per­cent year-on-year, while sales in the re­tail sec­tor hit NT$983.5 bil­lion, up 1.8 per­cent, and sales in the dining ser­vices sec­tor stood at NT$107.7 bil­lion, up 1.9 per­cent.

Look­ing ahead, the MOEA said, com­mer­cial sales are ex­pected to reg­is­ter an­other decline in April amid food safety con­cerns af­ter pes­ti­cide-tainted tea drinks hit lo­cal chain bev­er­age stores.

Ac­cord­ing to the min­istry, tea drink chains in Tai­wan ac­count for 60-70 per­cent of the to­tal sales in the lo­cal bev­er­age seg­ment so there was no doubt that ris­ing food safety fears are ex­pected to have an im­pact on com­mer­cial rev­enue.

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