Export growth declines as orders from US drop

Export growth unexpectedly slowed last month as retailers in the US, Taiwan's second-biggest export market after China, reduced orders to lower stocks after slow Christmas sales.

Exports last month gained 4 percent from a year earlier to US$10.07 billion, but were down from US$11.65 billion in December, a Ministry of Finance report showed. The 4 percent year-on-year rise in January compares with a 13.5 percent increase posted the previous month.

Imports rose 29.1 percent in January from a year earlier to US$9.5 billion after increasing 16.9 percent the previous month. Taiwan's imports of crude oil more than doubled to US$726 million from a year earlier, according to the ministry.

The report said the January trade surplus fell 75.5 percent from a year earlier to US$570 million, compared with a 3.1 percent decrease recorded in December.

Exports to the US fell 5.7 percent to US$1.9 billion after US wholesale inventories in December had their biggest gain in 2 1/2 years.

Sales to Japan fell 6 percent, and shipments to Europe fell 6.2 percent.

Shipments to China more than doubled last month from a year earlier to US$1 billion.

Shipments to Hong Kong fell 4.2 percent to US$2.3 billion. Many goods headed for China go through Hong Kong because of restrictions on trade between China and Taiwan.

Overseas sales of electrical products such as mobile phone components, electric tools and machinery used in construction, climbed 2.3 percent last month from a year earlier, the report showed.

Shipments of computer chips and other electronics, which make up the biggest share of the total, rose 9.7 percent. Sales of mobile phones and other telecommunications goods fell 6.2 percent.