Orders for Taiwan's exports fell in April posted their biggest drop in more than two years in April and manufacturers cut production, the latest signs that Taiwan's economic growth is stalling.
Orders for Taiwan-made semiconductors, mobile phones and other exports declined 6.6 percent from a year earlier to US$11.6 billion, pulled down by falling US orders, the Ministry of Economic Affairs said. That was the biggest drop since February 1999. Industrial production fell 5.9 percent, the third drop this year.
Falling demand for electronic goods, Taiwan's biggest export, is hurting sales and profit at companies such as United Microelectronics Corp (聯電) and Acer Inc (宏電). Record unemployment and falling corporate and consumer spending mean domestic demand isn't picking up the slack. Taiwan's economy probably grew at its slowest pace in more than 25 years last quarter, economists said.
``With no clear upturn in the Taiwan or global economy, orders will keep falling,'' said Fang Jeng-ren, an economist at President Securities Corp (
Exports, which make up about half of Taiwan's economy, fell 5.7 percent in the first four months of the year from the same period last year. Falling orders, which point to exports in about three months, suggest shipments won't rebound soon. The government expects exports to drop 5 percent this year after rising 22 percent in 2000.
But export orders are expected to make a better showing in the third quarter compared with the second quarter, due to a high comparative base in 2000, said Chang Yaw-tzong (張耀聰), the head of Statistics Department under the Ministry of Economic Affairs.
Orders for electronics, including semiconductors and notebook computers, fell 15.5 percent from a year earlier to US$2.01 billion, after rising 2.7 percent in March. Orders for telecommunications equipment fell 7.4 percent to US$2.07 billion in April, compared with a 1 percent drop in March.
Chipmakers' Losses Taiwan's electronics makers are cutting costs and scaling back production and expansion plans.
RSS