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Rebound may be near as exports fell less than expected

The nation's exports fell less than expected in March, signaling a 13-month slide is nearing an end, as manufacturers shipped more parts to factories in China and US demand rebounded.

Exports fell 2.3 percent from a year earlier to US$11.45 billion, the government said yesterday. That was less than the 11.1 percent drop in the first two months of this year.

Companies such as Ritek Corp (錸德) and Benq Corp (明電) are boosting production as faster growth in the US and other markets revives demand for consumer electronics and mobile phones. Looser restrictions on investing in China are also prompting manufacturers to move production there to cut costs, lifting exports to China.

"The recovering US economy created a shortage of cargo space on some routes in March," said Wu Yuan-chang, a manager in the cargo department at China Airlines Co (華航), the nation's largest carrier. "Shipments to China and Japan also rose significantly."

Imports unexpectedly rose for the first time in 13 months, gaining 1.8 percent from a year earlier to US$10.16 billion, as manufacturers bought more parts and machines to fill rising orders. The import gain narrowed the trade surplus to US$1.29 billion from US$1.73 billion a year earlier.

Ritek, which makes recordable compact discs and exports almost all of its goods, said it will use more than 90 percent of its factory capacity this quarter, up from 80 percent in the first quarter, and plans to start operating at full capacity in the second half of the year.

Exports of electrical products rose 27.7 percent last month from a year earlier, leading the gains, today's report showed.

Electronics exports fell 6.4 percent, while shipments of mobile phones and other telecommunications goods declined 8.9 percent.

Shipments to Hong Kong rose 7.5 percent to US$2.72 billion, making up the biggest share of the total.

Sales to customers in the US fell 13.3 percent. Exports to Japan fell 17.4 percent, and exports to Europe slipped 12.3 percent.

In the first quarter, overall exports fell 7.9 percent from a year earlier.
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