Export orders fell 3.1 percent last month, the steepest annual decline in five months, to US$60.93 billion, as inflation and interest rate hikes lowered demand for some types of electronics and a bulk of traditional goods, Ministry of Economic Affairs data showed yesterday.
But the decline was offset to a certain extent by the launch of new iPhones by Apple Inc and increasing demand for emerging technologies and applications, the ministry said.
Export orders from China last month contracted by 27.9 percent annually to US$11.55 billion, declining for the sixth quarter in a row, as Beijing’s “zero COVID” policy hurt the world’s second-largest economy and curtailed Chinese consumer spending, while orders from the US, Europe and ASEAN nations rose by 2.8 percent, 9.6 percent and 12.5 percent, respectively, the ministry said.
Photo: CNA
Export orders last quarter contracted 1.1 percent year-on-year to US$169.78 billion from US$171.71 billion, ending nine consecutive quarters of expansions. That represented quarterly growth of 2.2 percent from US$166.17 billion.
In the first three quarters of this year, export orders increased 5.7 percent from a year earlier to US$509.07 billion, the ministry said.
The fourth quarter is expected to have a weak start, as export orders are forecast to drop at an annual rate of between 1 percent and 3.6 percent, or US$57 billion and US$58.5 billion, the ministry said.
The US’ latest semiconductor export controls on China should have a limited effect on local companies based on its preliminary assessment, it said.
“The ministry’s projection reflects the impact from a worsening global economy as central banks around the world are raising interest rates further to rein in rising inflation,” Department of Statistics Director Huang Yu-ling (黃于玲) said yesterday.
Uncertainties about the war in Ukraine and the COVID-19 pandemic are also adding downside risks to the world economy and trade, Huang said, adding that order visibility is short.
Orders for electronics — primarily semiconductors — rose 6 percent annually and 8.5 percent monthly to US$20.66 billion, driven by chips used in 5G-related applications, high-performance computing devices and automotive electronics, ministry data showed.
Orders for information and communications technology products grew 5 percent year-on-year and 42.7 percent month-on-month to US$20.36 billion, fueled by demand for Apple Inc’s new iPhone 14 series, cloud-based data centers and networking devices.
Orders for optoelectronics, including flat panel displays, fell 41.1 percent year-on-year and 3.6 percent month-on-month to US$1.69 billion, attributable to sluggish demand for TVs and notebook computers.
An inventory correction cycle also reduced orders, the ministry said.
Orders for base metals dipped 31 percent year-on-year and 6.1 percent monthly to US$2.23 billion last month, amid soft demand for steel products worldwide, the data showed.
Orders for machine tools contracted 9.8 percent annually, but increased 1.1 percent monthly to US$1.93 billion, as manufacturers invested conservatively in new machines and manufacturing equipment, it showed.
Orders for plastics declined 32.3 percent annually and 8.4 percent monthly to US$1.77 billion, while petrochemical product orders fell 20.2 percent annually and 5 percent monthly to US$1.67 billion due to inventory issues and dwindling demand, the data showed.
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