Taiwan's July export growth slows, signaling a drop in global demand
Taiwan's slowing exports indicate global demand is beginning to slow
Taiwan's export orders likely grew for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, a Reuters poll showed on Friday.
The median forecast from a poll of 11 economists was for export orders to rise 3.6% from a year earlier. Forecasts ranged for an expansion of between 1.1% and 7.5%.
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The island's export orders, a bellwether of global technology demand, unexpectedly fell for the first time in two years in April. Orders shrank 5.5% from a year earlier to $51.9 billion, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions.
Taiwan, a bellwether of the global technology sector, may see a rise in exports for the third consecutive month, but at only half the increase of the previous month, signaling a cool down in global demand. Pictured: A cargo ship stopped at a port in (REUTERS/Ann Wang / Reuters)
But they returned to growth in May and June. In June orders went up 9.5% from a year earlier to $58.83 billion.
The government has predicted July orders to be between 0.4% and 3.1% higher than the year before.
Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
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The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd, are a key part of the global supply chain for technology giants including Apple Inc.
The data for July will be released on Monday.