Export orders last month fell for the 13th consecutive month, dipping 15.6 percent year-on-year to US$51.4 billion as a weak global economic recovery and supply chain inventory issues dampened demand for electronic gadgets, chips and components made by local manufacturers, the Ministry of Economic Affairs said yesterday.
Export orders last quarter totaled US$145.16 billion, plummeting 14.5 percent year-on-year, ministry data showed.
For the first three quarters, orders fell 18.7 percent to US$413.73 billion from the same period last year.
Photo: CNA
With conflict between Israel and Hamas adding to a macroeconomic slump and an inventory correction cycle, export orders this month are likely to contract again, but at a slower pace of 4.3 to 7.9 percent, boding well for a revival this quarter, the ministry said.
Local exporters might receive orders totaling US$51 billion to US$53 billion this month, it said.
“Export order data are moving toward a positive trend thanks to new product launches by global brands and year-end shopping sprees,” Department of Statistics Director Huang Yu-ling (黃于玲) said by telephone. “There is a chance that export orders will stage a technical rebound in November, given the low base last year.”
With a new catalyst in artificial intelligence (AI)-related chips, servers and other components, the ministry hopes that export orders would swing into positive territory in the fourth quarter, Huang said.
However, the Gaza conflict could be the next “black swan” event, she added.
Last month, information and communications products shrank 19.2 percent annually to US$16.45 billion, as inflationary risks and higher interest rates damped demand for laptops, smartphones and networking devices, the ministry said.
However, demand for AI servers increased last month from a year earlier, partly offsetting some declines, it said.
Orders for electronic products plummeted 17.21 percent year-on-year to US$17.21 billion last month, attributable to lower demand for memory chips, foundry services and printed circuit boards as customers were in the process of digesting excessive inventory, it said.
However, chip designers have reported a rebound in the past few months, the ministry said.
Orders for optoelectronics products grew 7.3 percent year-on-year to US$1.82 billion, the only segment to rise last month, it said.
Price rises for large TV panels helped the expansion, it said.
Orders for basic metals, mainly steel, slumped 14.1 percent year-on-year to US$1.92 billion last month due to weak demand, it said.
Machine tools orders dipped 19.1 percent year-on-year to US$1.56 billion as manufacturers grew wary about investing in new equipment amid a global economic slowdown, the ministry said.
Orders for plastic products dropped 12.8 percent annually to US$1.55 billion, while chemical product orders fell 10.1 percent to US$1.5 billion amid lower average selling prices and supply increases, it added.
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