Export orders contracted 19.3 percent year-on-year to US$47.51 billion last month, the lowest in about two years, as high inflationary pressure discouraged consumers from buying non-essential items and a lingering inventory correction cycle curbed new orders, the Ministry of Economic Affairs said yesterday.
Export orders have declined for five consecutive months on an annual basis. On a monthly basis, export orders dropped 8.9 percent.
Seasonal weakness and fewer working days due to the Lunar New Year holiday were also major factors that contributed to the drop in orders.
Photo: CNA
The ministry expects the downtrend to carry into this quarter, as macroeconomic conditions continue weighing on consumer spending.
Export orders this month are forecast to drop 6.9 to 10.8 percent annually to between US$46 billion and U$48 billion, the ministry said.
That would represent a monthly decrease of 1 to 3.2 percent, it added.
However, surveys found signs that China’s reopening would help to lift orders for Taiwanese manufacturers, thanks to an improvement in consumer spending in China and supply chain efficiency, the ministry said.
“Local manufacturers said China’s reopening would help improve factory operations, supply chain resilience and facilitate shipments of goods. As a result, customers are more willing to place new orders,” Department of Statistics Director Huang Yu-ling (黃于玲) said via telephone.
About 9.6 percent of 2,069 survey respondents said China’s reopening is having a positive effect on their businesses this month, higher than 7.6 percent last month, the ministry said, adding that 4.3 percent of companies expected the reopening to negatively affect their operations this month, down from 5 percent last month.
A majority of 66.8 percent expected no impact at all, a decline from 71.9 percent last month, the ministry said.
Last month, orders of information and communications technology products rose 9.8 percent year-on-year, or 4.8 percent monthly, to US$17.23 billion, thanks to an increase in orders for mobile phones after China ended its COVID-19 restrictions.
However, demand for notebook computers remained sluggish. Orders from Europe grew by US$2.92 billion — the most among all regions.
Orders for electronics shrank 21.8 percent annually, or 12.2 percent monthly, to US$15.03 billion as inventory digestion efforts continued amid sagging demand.
The decline was partly offset by robust demand for 5G products, high-performance-computing devices and automotive electronics, the ministry said.
Orders for optoelectronic products, primarily flat panels, dropped 48 percent year-on-year, or 20.9 percent monthly, to US$1.28 billion last month. Displays used in notebook computers and TVs, camera lenses and other components, experienced a steep slump in orders due to prolonged supply gluts.
Flat-panel makers said oversupply and weak consumer demand have driven display panel prices to unprecedented lows.
Orders for basic metals plummeted 45.4 percent year-on-year, or 17.5 percent month-on-month, to US$1.8 billion, attributable to sluggish demand for steel and lower steel prices, as customers were conservative about placing new orders, the ministry said.
Order for plastic products plunged 49.4 percent annually, or 25.6 percent monthly, to US$1.32 billion, as weak demand resulted in reduced prices, it said.
Machine tool orders sank 38.4 percent year-on-year, or 20 percent month-on-month, to US$1.46 billion last month, as manufacturers reduced spending on new equipment amid a softening global economy, it said.
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