Taiwan July export order growth seen slowing on cooling demand: Reuters poll
1:26 am Friday, August 19th, 2022
TAIPEI (Reuters) – Taiwan’s export orders likely grew for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, a Reuters poll showed on Friday.
The median forecast from a poll of 11 economists was for export orders to rise 3.6% from a year earlier. Forecasts ranged for an expansion of between 1.1% and 7.5%.
The island’s export orders, a bellwether of global technology demand, unexpectedly fell for the first time in two years in April. Orders shrank 5.5% from a year earlier to $51.9 billion, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions.
But they returned to growth in May and June. In June orders went up 9.5% from a year earlier to $58.83 billion.
The government has predicted July orders to be between 0.4% and 3.1% higher than the year before.
Taiwan’s export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island’s manufacturers, including the world’s largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd, are a key part of the global supply chain for technology giants including Apple Inc.
The data for July will be released on Monday.
(Poll compiled by Devayani Sathyan and Carol Lee; Reporting by Ben Blanchard; Editing by Jacqueline Wong)
