Recasts, updates all through
Sept export orders -3.1% y/y vs -5.5% ballot forecast
Export orders from China -27.9% y/y vs -25.5% in Aug
Ministry sees Oct orders between -1% and -3.6% y/y
Yr-end vacation season helps outlook
TAIPEI, Oct 20 (Reuters) – Taiwan’s export orders contracted barely although at a much less extreme price than anticipated in September, coming off a excessive base and supported by sturdy gross sales of recent shopper electronics merchandise like iPhones.
The federal government stated momentum for the remainder of the yr could be helped by the year-end vacation season in Europe and america, historically the excessive level for export orders. Nevertheless it highlighted uncertainties like world inflation, the battle in Ukraine and China’s lockdowns to include COVID-19.
Export orders, a bellwether for world expertise demand, shrank 3.1% in September from a yr earlier to $60.93 billion, the Ministry of Financial Affairs stated on Thursday, although nonetheless the second-highest determine on report for the month. Analysts had anticipated a drop of 5.5%.
September’s fall adopted a 2% annual enlargement in August.
Orders for telecommunications merchandise rose 5% in September from a yr in the past due principally to smartphone orders for “worldwide manufacturers”, the ministry stated. Apple Inc AAPL.O, which many Taiwanese corporations make parts for, put its newest iPhones on sale final month.
Orders for digital merchandise jumped 6%, pushed by demand for high-end computing, cars and stockpiling for brand new shopper electronics, the ministry stated.
Orders for telecommunications merchandise and electronics together with chips each hit report highs for the month.
A development of working and learning from dwelling that began in the course of the COVID-19 pandemic has fuelled a progress in orders for Taiwanese electronics for greater than two years. Extra lately, a worldwide semiconductor scarcity has additionally stuffed Taiwanese chipmakers’ order books.
The ministry stated it anticipated this month’s export orders to be between 1% and three.6% decrease than these of October 2021.
Taiwanese firms resembling Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are main suppliers to Apple, Qualcomm Inc QCOM.O and different world tech corporations.
Taiwan’s September orders from China plummeted 27.9% from a yr earlier, in contrast with an annual fall of 25.5% in August. Month-on-month orders from China edged up 3.8%.
Taiwan’s orders from america rose 2.8% from a yr earlier, a slower tempo in contrast with the earlier month’s 7.5% rise, however nonetheless hitting an all-time excessive for the month.
Export orders from Europe rose 9.6% to a brand new excessive, versus an annual rise of 14.6% in August. Orders from Japan expanded 5%.
(Reporting by Liang-sa Loh, Yimou Lee and Ben Blanchard; Modifying by Tom Hogue)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.