Export orders posted record growth last month, fueled by the global economic recovery and Chinese companies building up inventories ahead of the Lunar New Year holiday.
Orders rose 71.8 percent from the corresponding period a year earlier to US$30.4 billion, the Ministry of Economic Affairs said yesterday. That came after orders grew 52.6 percent in December year-on-year to US$31.73 billion.
“The global economy is recovering,” Huang Ji-shih (黃吉實), director of the ministry’s statistics department, told a press conference. “Chinese companies were stocking up before the long Lunar New Year holiday this month.”
These factors boosted last month’s orders, with information technology and communication products — such as computers and handsets — rising 73.3 percent. Orders for electronics products grew 74.2 percent, while those for precision machinery surged 163.7 percent.
Orders from China — Taiwan’s largest export market — increased 135 percent last month, while those from the US climbed 41.8 percent.
The surge in orders was also attributed to a lower base in January last year, when the global financial crisis hit hard and dragged down orders by 41.8 percent.
However, orders are expected to slide this month from last month, because of the nine-day Lunar New Year holiday and as some Taiwanese operations in China grapple with a labor shortage, Huang said.
The statistics department also reported that industrial production grew a record 69.7 percent last month from a year earlier.
“This is partly attributable to the gradual economic recovery in Europe and the US, demand from emerging markets, as well as the launch of new technology products,” Huang said.
Production by manufacturing industries — which include electronics, chemicals, food and textiles — grew 77 percent last month.
Domestic consumption also enjoyed a boost, along with the rosy export orders. Wholesale, retail as well as food and beverage sales last month rose 13.9 percent from a year ago to NT$1.07 trillion (US$32 billion).
The growth, however, was weaker compared with December’s increase of 19.2 percent, when the ending of the government’s commodity subsidy fueled a last wave of car sales, it said.
Wholesale revenues rose 25.7 percent to NT$768.8 billion, but retail sales — which include cars, cosmetics, tech gadgets and oil — fell 7.7 percent to NT$277.9 billion. food and beverage revenues also slid 9.5 percent to NT$27.5 billion, it said.
The retail as well as the food and beverage sector were affected by a higher base because the government gave out consumer vouchers in January last year, Huang said.
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