Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Taiwan Feb export orders miss forecast, China a big drag

Published 03/20/2023, 05:14 AM
Updated 03/20/2023, 05:19 AM
© Reuters. FILE PHOTO: Taiwan Semiconductor Manufacturing Company (TSMC) Fab 15B, one of the company's four giga semiconductor fabrication plants, is pictured in Taichung, Taiwan September 2, 2021.    REUTERS/Yimou Lee T
QCOM
-
AAPL
-

TAIPEI (Reuters) - Taiwan's export orders in February shrank for a sixth straight month, though at a slower pace, dragged down by China and as global demand continued to be squeezed by inflation and interest rate hikes.

The island's export orders, a bellwether for global technology demand, fell 18.3% from a year earlier to $42.12 billion, the Ministry of Economic Affairs said on Monday.

February's number was worse than analysts' expectations for a 15.0% decline, and compared with January's 19.3% slump.

"Export orders in February missed expectations mainly because demand for consumer electronics was far less than expected ... mainly because electronics and telecom products did not meet expectations," the ministry said.

Orders for telecoms products dropped 20.3% and electronic products fell 21.9% from a year earlier, it said.

Global economic growth momentum could be constrained in the coming months as inflation and interest rate pressures persist, as well as no signs of let-up in the Russia-Ukraine war, the ministry said.

However, that would be offset by demand for emerging technologies such as high-performance computing, artificial intelligence, cloud data centres and automotive electronics, it added.

Taiwan's export-driven economy has been hit by slowing demand from China and the United States, its two biggest markets.

Taiwan's February orders from China were 35.5% lower than a year earlier, versus a 45.9% drop in January.

Most economists now expect Taiwan's central bank to keep the benchmark interest rate unchanged at its quarterly rate-setting meeting on Thursday.

The ministry added that it expected export orders this month to fall by 20.2% to 23.4% from a year earlier.

Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd, are major suppliers to Apple Inc (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM) Inc and other global tech companies.

© Reuters. FILE PHOTO: Taiwan Semiconductor Manufacturing Company (TSMC) Fab 15B, one of the company's four giga semiconductor fabrication plants, is pictured in Taichung, Taiwan September 2, 2021.    REUTERS/Yimou Lee T

Taiwan's orders from the United States in February fell 12.6% from a year earlier, versus a 14.7% drop in January.

Export orders from Europe were down 13.1%, versus January's gain of 18.3%. However, orders from Japan rose 5.5% year-on-year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.