The value of export orders dropped 5.9 percent annually and 4.1 percent monthly to US$35.79 billion last month, dragged down mainly by declining orders from China and Hong Kong, the Ministry of Economic Affairs said yesterday.
The value of orders from China and Hong Kong fell by US$1.17 billion from a year earlier to US$8.98 billion last month, accounting for 52.7 percent of the US$2.22 billion annual drop in overall export orders last month, the ministry said.
“The increasing localization of supply chains in China is an issue that we have to face seriously,” Department of Statistics Director-General Lin Lee-jen (林麗貞) told a news conference in Taipei, adding that last month’s data on orders from China and Hong Kong marked the fifth consecutive month of decline, excluding Lunar New Year holiday factors.
Photo: CNA
Weaker-than-expected growth in China has also affected demand for Taiwanese goods, Lin said. She said it would be worth observing if the annual decline in export orders from China and Hong Kong would extend throughout the year, citing the faster-than-expected rise of supply chains in China.
“Aside from flat panels, we noticed that Taiwan’s integrated circuit design, packaging and testing service sectors have also been facing increasing challenges in China,” Lin said.
In addition, the weak demand for PCs in Europe and handheld devices in emerging markets also affected the performance of the nation’s electronics and precision instruments industries, Lin said.
Apart from the information and communication technology industry, which saw a 2.3 percent annual increase in orders to US$9.7 billion, the ministry’s report showed broad declines in orders for electronics, precision instruments, basic metals, petrochemicals and machinery products last month from the same period a year ago.
By country, the US was still Taiwan’s largest export destination, with orders increasing 5.2 percent to US$9.79 billion from the same period a year ago, Lin said.
However, the annual growth rate for US orders was slower than the 14 percent registered a month earlier, an indicator of weakening demand as the product cycle for Apple Inc’s iPhone nears a refresh, Lin said.
Orders from China and Hong Kong, Europe, ASEAN and Japan all saw an annual decline last month, with orders from China and Hong Kong and Japan plunging by double-digit percentage points from a year ago, Lin said.
Lin said the ministry forecasts the value of this month’s export orders to be flat or decline from last month’s US$35.79 billion. As such, the value of export orders this month will likely decline from last year’s US$38.82 billion, she said.
The value of export orders totaled US$180.47 billion in the first five months of this year, 0.6 percent less than in the same period last year, the ministry’s data showed.
The total value for the first half of this year is expected to be less than the US$220.47 billion in the same period last year, Lin said.
However, Lin said the ministry remains optimistic on export orders in the second half of this year, citing the upcoming launches of Microsoft Corp’s Windows 10 operating system and new Apple products.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old