August exports hit an all-time high

The nation's export growth accelerated on increased electronics sales and demand from China and Southeast Asia.

Exports last month rose 10.5 percent year-on-year to an all-time high of US$21.4 billion, compared with an 8.2 percent rise to US$21.18 billion posted in July, the Ministry of Finance said yesterday.

``Given strength in China and Europe, it's going to be business as usual for Taiwanese exporters for the time being,'' Standard Chartered PLC's Taipei-based economist Tony Phoo (符銘財) said.

Imports last month fell 0.3 percent year-on-year to US$18.1 billion, compared with a 16.7 percent increase to a record high of US$20.73 billion posted in the preceding month, the ministry said.

The main reasons for the fall were a 25.1 percent decline in imports of crude oil and the year-earlier purchase by China Airlines Ltd (中華航空) of an aircraft.

``The decline in imports indicates that consumer spending doesn't have growth momentum,'' said Lucas Lee, a Taipei-based economist at Mega Securities Co (兆豐證券). ``This could affect the third-quarter's gross domestic product.''

Trade last month resulted in a surplus of US$3.3 billion, widening sharply from a surplus of US$450.6 million in July. That was the largest since December 2005, according to the ministry's data.

For the first eight months of the year, the trade surplus stood at US$14.29 billion, up 32.6 percent from the same period a year earlier.

Exports from January to last month rose 8 percent to US$156.52 billion, while imports rose 6 percent to US$142.23 billion.

Taiwan and other export-oriented Asian nations are relying on China's appetite for goods ranging from electronics to steel to sustain economic growth. European orders are also helping to offset slumping demand from the US, where a housing recession is denting confidence.

Exports to China and Hong Kong combined rose 14.8 percent last month, faster than July's 12.2 percent, while US-bound goods fell 11.5 percent last month, the biggest decline on record, following a 2 percent decline in the previous month, the ministry's statistics showed.

Exports bound for Europe climbed 8.5 percent after July's 19.8 percent growth and those to Southeast Asian countries climbed 28.4 percent after the previous month's 2 percent increase.

Taiwan's exports of electronics rose 7 percent, after gaining 2.7 percent in July, the ministry said. Shipments of electronics products typically pick up in the second half of each year as retailers stock up for Christmas holiday shopping.

Shipments of information and communications products decreased 14.6 percent last month, following the previous month's 3.1 percent drop.