Taiwan July export orders may rebound after 16 months of decline: poll

[TAIPEI] Taiwan's export orders in August are expected to have risen nearly one per cent from a year earlier, its first annual expansion after 16 months of decline, a Reuters poll showed.

Taiwan's export orders are a leading indicator of demand for Asia's exports and for hi-tech gadgets, and typically lead actual exports by two to three months.

The third quarter normally marks an improvement in demand as companies gear up production to meet year-end holiday needs. Manufacturing activity last month, as measured by the Nikkei/Markit Taiwan PMI, showed employment rising at its fastest pace in two years on the back of new orders picking up.

The export order data will come a week before the central bank decides on whether to cut interest rates for a fifth time in a year to bolster weak growth for the export-oriented economy.

REUTERS