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Growth in local leasing revenues flat in October on lower machinery rentals

TAIPEI, Taiwan -- Revenue growth in Taiwan's leasing business was flat in October as demand for machinery rentals fell, offsetting growth in leasing other items in reflection of the slow pace of the local economic recovery, government statistics showed yesterday.

However, the October sales data stopped a three-month losing streak in the leasing industry, according to the statistics. Compared to last year, revenue in the leasing business in July, August and September fell 1.8 percent, 0.7 percent and 0.5 percent year-on-year, respectively.

October revenues rose 0.1 percent from a year earlier and were up 2.9 percent from September's NT$6.8 billion, the statistics indicated.

Citing the sales report, the Ministry of Economic Affairs (MOEA) said the local leasing sector generated NT$7 billion (US$233 million) in sales in October, with sales posted by the machinery rental segment down 14.1 percent year-on-year at NT$2.1 billion.

The MOEA said the declining machinery leasing sales resulted from weakening demand from construction contractors in the month amid cautious sentiment toward the local property market in a slow economic recovery.

On the other hand, revenue generated by the local transportation equipment rental segment rose 9.3 percent from a year earlier to NT$4.2 billion on rising demand for tour buses and other vehicles, the ministry said.

The ministry said that as the local tourism sector intensified its efforts in launching promotion campaigns on short-term trips in Taiwan, the number of tourists increased, which boosted demand for transportation in the month.

Sales generated from other items, including furniture and evening gown leasing for October, fell 0.6 percent from a year earlier to NT$700 million, the statistics showed.

In the first 10 months of this year, revenue posted by the local leasing sector totaled NT$67.5 billion, up 1.8 percent from a year ago, according to the statistics.

In October, sales posted by the local information service sector grew 4.4 percent from a year earlier to NT$24.8 billion with revenue generated by computer system design services, which included software development, up only 1.8 percent year-on-year amid fiercer-than-ever competition.

However, the data processing segment enjoyed a 17.7-percent year-on-year increase in sales on the back of the booming online marketing and electronics information integration businesses, the ministry said.

In the first 10 months of this year, revenue posted by the information services sector rose 4.3 percent from a year earlier to NT$235.8 billion.

The MOEA said sales in the professional technology services sector which refers to management consulting, advertising/market research, interior design, and photo studio operations, rose 5.1 percent year-on-year in October to NT$20.8 billion.

In the 10-month period, revenue generated by the sector grew 3.6 percent from a year earlier to NT$204.4 billion.

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