Taiwan's exports fell for an eighth straight month in October.
Overseas sales fell 16.1 percent from a year earlier to about US$11.5 billion after a revised 31.5 percent drop in September, the Ministry of Finance said.
Imports fell 21.2 percent to US$9.7 billion. That left a US$1.7 billion trade surplus, up from a US$1.3 billion surplus a year earlier.
While the drop in exports was the smallest since April, that doesn't point to a rebound in demand, the ministry said.
The government expects the economy to shrink as much as 2 percent this year as exports -- which make up almost half of GDP -- extend their slide.
"Exports are the umbilical cord of Taiwan's economy, so slowing global demand will devastate Taiwan more than other,more balanced economies," said Vickie Hsieh, chief economist at President Securities Corp (統一投資).
Exports stemmed their decline last month as manufacturers shipped goods held up after the Sept. 11 terrorist attacks in the US and customers stocked up ahead of the Christmas season, said Hsu Kuo-chung (許國忠), head of the ministry's statistics department.
"Signs of a recovery are still unclear even though the number seems to have improved from previous months," Hsu said.
Orders for Taiwan's exports shrank a record 27 percent in September from a year earlier, suggesting sales may not start rising again soon.
Taiwan's economy shrank 2.35 percent in the second quarter from a year earlier, the first contraction in a quarter century, as orders for computers and semiconductors fell and domestic spending stalled.
While pre-Christmas sales may have limited the slide in exports last month, shipments may not rebound until next year as US consumers rein in spending.
Quanta Computer Inc (廣達電腦), Taiwan's biggest notebook computer maker, said yesterday that IBM Corp delayed a plan to buy 100,000 notebook computers in the fourth quarter.
Orders for Taiwan's exports fell a record 27 percent in September from a year earlier, suggesting shipments won't rebound soon.
As exports fall, Taiwanese chipmakers and other companies are putting expansion plans on hold, trimming production and laying off workers.
Taiwan's jobless rate rose to 5 percent in September, a ninth straight record.
The US economy shrank at a 0.4 percent annual rate in the third quarter, while unemployment in the country rose last month to a five-year high and consumer confidence dropped to a 7.5-year low.
Taiwan's exports to the US fell 16.1 percent last month from a year earlier to US$2.6 billion, yesterday's report showed.
Overall exports of electronics, which made up the biggest share of sales, declined 30.8 percent to about US$2.2 billion.
Shipments of mobile phones and other telecommunications goods fell 25.6 percent to US$1.4 billion.
The Ministry of Finance forecast yesterday that exports will fall 16.8 percent this year, less than the 20 percent decline it predicted earlier. It expects a 21.9 percent slide in imports, leaving a US$14 billion trade surplus for the year.
The ministry revised the decline in exports in September to 31.5 percent from the record 42.5 percent it reported last month, citing incomplete data because of a typhoon.
Imports fell 34.1 percent in September from a year earlier, less than the 40.4 percent drop reported initially.
That left a US$1.1 billion trade surplus, compared with the US$417 million reported last month.
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