Export orders up for the second consecutive month
By John Liu,The China PostTAIPEI, Taiwan -- Export orders amounted to US$36.32 billion in August, a 0.5-percent increase year-on-year, continuing a growth trend for the second consecutive month according to a report released by the Ministry of Economic Affairs (MOEA) yesterday.
September 26, 2013, 12:05 am TWN
August's export orders increased US$2.1 billion from July, which was a 0.6-percent increase month-on-month. Export orders between January and August amounted to US$281.56 billion, a 1.2-percent drop compared with the same period last year.
Orders by Product Lines
August's export orders in information and communication technology (ICT) products, electronics products, chemical products and basic metal products saw annual growth of 4.8 percent, 0.7 percent, 4.5 percent, and 2.1 percent, respectively. Orders of precision instrument products, plastic products, and machinery products declined 15.4 percent, 3.2 percent and 10 percent, respectively.
Due to higher demand for semiconductor high-end production facilities and electronic chips, electronic product orders have seen growth for three consecutive months, MOEA Statistics Department Director Lin Lee-jen (林麗貞) said. Because of higher costs of crude oil and steel, export orders of chemical products and basic metal products increased in August.
Due to the government ceasing to subsidize LCD TV purchases in mainland China and fierce competition in the flat panel industry, orders of precision instrument products decreased in August.
Orders by Export Markets
Export orders placed by mainland China and Hong Kong, the U.S., Europe, and six major ASEAN nations — Thailand, Singapore, the Philippines, Vietnam, Malaysia and Indonesia — saw annual growths of 0.1 percent, 9.1 percent, 1 percent and 0.3 percent, respectively, while exports to Japan dropped 14.3 percent. Decreasing orders of personal computers, LCD TVs and mobile devices caused the drop, the MOEA Statistics Department said.
The world economy is recovering slowly, the MOEA said. Global Insight has recently adjusted GDP growth in 2013 upward for Japan, mainland China, South Korea, Singapore and Europe. These markets are expected to drive more product demand, the MOEA forecast.
Near Future Forecast
With China's extended national holiday and Christmas shopping season approaching, the MOEA expects higher demand driving exports in the near future. Additionally, with new mobile devices expected to be launched in the rest of 2013, demand for parts assembly and semiconductor chips are expected to grow. With the Hannover Messe 2013 industrial trade fair held in Germany in mid-September, exports of machinery products are likely to increase, the MOEA said.
According to the MOEA, 18.7 percent of firms surveyed expect higher export orders in September compared with August, 57.8 percent expect to receive about the same orders, while 23.5 percent expected to receive fewer orders. The MOEA cited a survey indicating that the August directional movement index for export order value stood at 55.9. A reading of above 50 in the index indicates an expected increase in export order value over the previous month. Therefore, the MOEA expects September export orders to increase.
The directional movement index for export order value in the ICT sector and the electronics sector hit 65.1 and 60.1 respectively, while the indices for the precision instrument sector reached 28.7, suggesting the former two sectors will see growth in export orders while the latter will see decline.