US Markets

Taiwan export orders grow at fastest pace in over 2-1/2 yrs

Credit: REUTERS/TYRONE SIU

Taiwan's export orders grew at their fastest pace in more than two-and-a-half years in August, surging on strong global demand for its telecommuting products, as the coronavirus pandemic forces millions of people around the world to work from home.

Recasts, adds details

August orders +13.6% y/y vs +8.2% in Reuters poll

Orders from China +21% y/y; U.S. +19.5% y/y

Ministry sees September orders between -0.1% and +3.2% y/y

Says outlook strong, but warns of pandemic, China-US tensions

TAIPEI, Sept 21 (Reuters) - Taiwan's export orders grew at their fastest pace in more than two-and-a-half years in August, surging on strong global demand for its telecommuting products, as the coronavirus pandemic forces millions of people around the world to work from home.

The island's export orders, a bellwether of global technology demand, rose 13.6% in August from a year earlier to $45.5 billion, Ministry of Economic Affairs data showed on Monday, setting a historic high for the month.

The data exceeded an 8.2% rise projected in a Reuters poll and a 12.4% increase in July. It was the sixth consecutive month of gains and the strongest since January 2018.

The ministry said the blockbuster performance was helped by continued strong demand for products such as laptops and tablets, with orders for electronics including smartphones hitting a record high thanks to upcoming new product launches.

Taiwan usually sees strong electronics orders in the third and fourth quarter ahead of the year-end holiday season when vendors launch new smartphone models.

The ministry said it expects export orders to be between a fall of 0.1% and rise of 3.2% in September from a year earlier. It expects demand for electronics to remain strong, but warned of uncertainty over the pandemic and China-U.S. trade frictions.

Taiwan's manufacturers are a key part of the global supply chain for tech giants such as Apple Inc AAPL.O.

Orders from the United States for Taiwan's goods rose 19.5% in August from a year earlier, compared with 22.2% growth in July, while those from China were up 21% versus a 16.8% gain the previous month. European orders lifted 21.2%, while those from Japan dropped 3.8%.

Taiwan's central bank last week revised up its growth outlook for the year amid signs the economy is bouncing back from the impact of the novel coronavirus pandemic.

(Reporting by Liang-sa Loh and Ben Blanchard; Editing by Ana Nicolaci da Costa)

((ben.blanchard@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AAPL

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More