Taiwan's export orders grew at the slowest pace in eight months last month as textile orders fell and demand from China cooled.
Orders, which are indicative of shipments in one to three months, gained 19.3 percent from a year earlier to US$24.94 billion after climbing 25.1 percent in February, the Ministry of Economic Affairs said.
That compares with the median 20 percent growth forecast in a survey of 18 economists.
"Textile makers couldn't raise prices because of competition from China," said Tiger Cheng, an economist at Polaris Securities Co (寶來證券) in Taipei.
"The fast growth in the electronics industry may not be sustainable in the second quarter,'' as companies such as display panel makers are forced to reduce prices, he added.
Taiwan's dependence on exports, which account for about half of the economy, makes it vulnerable to swings in overseas demand, said economists including Robert Subbaraman at Lehman Brothers Inc.
Textile orders fell 7.9 percent after gaining 0.7 percent in February, the ministry said in a statement.
Overseas orders for Taiwan's electronic goods, including semiconductors, rose 32.9 percent last month after climbing 29.7 percent the previous month, it said.
Orders for information technology and communications equipment jumped 50.1 percent after gaining 43.2 percent in February.
"We expect double-digit growth in export orders in the second quarter because demand for electronics products should remain strong,'' said Chang Yaw-tzong (張耀宗), statistics chief at the ministry, at a press briefing yesterday.
Orders from Hong Kong and China rose 16.9 percent last month from a year earlier after gaining 37.5 percent in the previous month, the ministry's statement said.
Orders from Europe rose 35.0 percent last month from a year earlier after increasing 26.6 percent in the previous month. Those from Japan gained 19.3 percent last month after climbing 14.7 percent in February. Orders from the US rose 22.7 percent last month after rising 18.4 percent in February, according to the ministry.
Meanwhile, exporters should brace for the negative impact brought by the rising currency and surging oil prices, Lo Huai-chia (羅懷家), deputy secretary-general of the Taiwan Electrical and Electronic Manufacturers' Association (電電公會), said yesterday.
The rapid appreciation of the New Taiwan dollar, coupled with surging oil prices, is driving Taiwanese exporters' spirits low, Lo said.
Lo said the NT dollar's recent appreciation does not reflect the nation's economic fundamentals but has been caused by speculation by international fund operators who believe cross-strait relations might improve in the near future.
Lo called for Taiwanese exporters to take hedging measures against variables and uncertainties.
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