Taiwan Nov export orders rise for first time in 15 months, outlook remains dim

Credit: REUTERS/ANN WANG

By Jeanny Kao and Faith Hung

TAIPEI, Dec 20 (Reuters) - Taiwan's export orders rose for the first time in 15 months in November as shoppers in the U.S. and China ramped up their purchases in the run up to the year-end holiday season, but the government forecast growth would contract again in December.

Export orders last month edged up 1.0% from a year ago to $50.63 billion, missing average analyst forecasts of 4.3% growth in a Reuters poll. Orders fell 4.6% year-on-year in October.

Orders for goods from the island, home to tech giants such as chip manufacturer TSMC 2330.TW, are a gauge of global technology demand.

The Ministry of Economic Affairs said it expects export orders in December to contract between 4.2% and 8.0% from a year earlier.

Export orders should get a boost from the traditional year-end holiday shopping season in Western markets, the ministry said, while also noting that the wars in Ukraine and Israel, inflation, and increased interest rates "may inhibit the momentum of global trade growth."

Weak demand for Taiwan's technology products amid global economic uncertainty has prompted the government to forecast that the export-dependent economy will grow at its slowest pace in 14 years in 2023.

Taiwan's orders in November for telecommunications products gained 10.0% and electronic products jumped 3.5% from a year earlier, the ministry said.

Orders from China climbed 8.8%, compared with a 1.2% rise in the prior month. Orders from the United States fell 2.4% versus a 1.4% dip in October.

Orders from Europe dropped 21.1%, better than October's 45.8% plunge.

From Japan, orders slid 29.0% last month, widening from a 17.6% contraction in October.

(Reporting by Faith Hung and Jeanny Kao; Editing by Ben Blanchard and Louise Heavens)

((faith.hung@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.

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