August export orders grow for second straight month
By John Liu ,The China PostTAIPEI, Taiwan -- The Ministry of Economic Affairs (MOEA) is scheduled to release a report on August's export figures next week which analysts expect will show continued year-on-year growth for the second consecutive month.
September 21, 2013, 12:07 am TWN
Officials at the MOEA said that smartphone manufacturers are expected to roll out new mid- and low-range devices before year-end, driving up demand for semiconductors and other electronic components. Demand in the plastics and chemicals sectors, as well as in the non-high-tech industries, is also expected to rise, boosting overall orders in August.
According to the MOEA, 19.4 percent of firms surveyed expect higher export orders in August compared with July, 57.7 percent expect to receive about the same orders, while 22.9 percent expected to receive fewer orders. All in all, the MOEA forecast the value of export orders in August to increase slightly compared with July.
The MOEA cited a survey indicating that the August directional movement index for export order value stood at 58.1. A reading of above 50 in the index indicates an expected increase in export order value over the previous month.
The directional movement index for export order value in the information and communication technology (ICT) sector hit 55.4, while the indices for the electronics sector and the precision instrument sector reached 59.0 and 76.1, respectively, suggesting all three sectors will report monthly growth in export order volume, the ministry said.
Export Orders Year-on-year
Assuming expected growth in August, Taiwanese exports will have risen for two consecutive months in year-on-year terms. Export orders had previously declined for five consecutive months, dropping 14.5 percent in February, 6.6 percent in March, 1.1 percent in April, 0.4 percent in May, and 3.5 percent in June, but July's export orders grew 0.5 percent year-on-year. ICT products and electronic products were the top two categories in terms of export order value for June, with the former generating US$9.16 billion and the latter US$8.60 billion in sales.
Global Export Comparison
The total value of Taiwanese export orders between January and July was set at US$245.24 billion, a 1.4 percent decline in year-on-year figures. The value of exports from mainland China (including Hong Kong) grew 1.4 percent in the same period, while that of the U.S. grew 1.5 percent. Figures for Europe and Japan dropped 3.5 and 13.9 percent, respectively, in similar terms.