Taiwan August export orders likely contract as demand eases

TAIWAN’S export orders likely contracted for a second straight month in August, and at a similar pace from the previous month as global demand cools, a Reuters poll showed on Monday (Sep 19). The median forecast from a poll of 13 economists was for export orders to fall 2 per cent from a year earlier. Forecasts ranged from an expansion of 3.4 per cent to a contraction of 3.7 per cent. The island’s export orders, a bellwether of global technology demand, unexpectedly fell in July. Orders shrank 1.9 per cent to US$54.26 billion from a year-ago period, taking a larger-than-expected hit from weakening demand for technology and continued economic troubles in its largest market China. The government has predicted last month’s orders to be between 0.9 per cent and 3.7 per cent lower than those of August 2021. Taiwan’s export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by 2 to 3 months. The island’s manufacturers, including the world’s largest contract chipmaker Taiwan Semiconductor Manufacturing Co, are a key part of the global supply chain for technology giants including Apple. The data for August will be released on Tuesday. REUTERS