Revenue growth in Taiwan’s leasing business was flat in October as demand for machinery rentals fell, offsetting growth in leasing other items as a reflection of the slow pace of the local economic recovery, government statistics showed on Saturday.
However, the October sales data stopped a three-month losing streak in the leasing industry, according to the statistics.
Compared with last year, revenue in the leasing business in July, August and September fell 1.8 percent, 0.7 percent and 0.5 percent year-on-year respectively.
October’s revenue rose 0.1 percent from a year earlier and was up 2.9 percent from September’s NT$6.8 billion (US$233 million) the statistics showed.
Citing the sales report, the Ministry of Economic Affairs said the local leasing sector generated NT$7 billion in sales in October, with sales posted by the machinery rental segment down 14.1 percent year-on-year at NT$2.1 billion.
The ministry said the decline in machinery leasing sales was a result of weakening demand from construction contractors in the month amid cautious sentiment toward the local property market, which it said was because of the slow economic recovery.
In other leasing news, revenue generated by the local transportation equipment rental segment rose 9.3 percent from a year earlier to NT$4.2 billion on rising demand for tour buses and other vehicles, the ministry said.
The ministry said that as the tourism sector intensified its efforts to launch promotion campaigns on short-term trips in Taiwan, the number of tourists increased, which boosted demand for transportation in the month.
Sales generated from other items, including furniture and evening gown leasing for October, fell 0.6 percent from a year earlier to NT$700 million, the statistics showed.
In the first 10 months of this year, revenue posted by the local leasing sector totaled NT$67.5 billion, up 1.8 percent from a year ago, according to the statistics.