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Taiwan export-order growth tops 16% on China demand

Taiwan export-order growth tops 16% on China demand

Taiwan's export-order growth exceeded 16 percent for a second month as demand from China offset weakness in U.S. sales.
Export orders, indicative of actual shipments for the coming one to three months, rose 16.1 percent in September from a year earlier, after August's 16.32 percent gain, the Ministry of Economic Affairs said in Taipei yesterday. That was more than the 15.85 percent median estimate of 18 economists surveyed by Bloomberg News.
China's gross domestic product may have expanded 11.5 percent in the third quarter, the fastest pace of any major economy, according to a survey of economists. The International Monetary Fund last week cut its 2008 growth forecast for the U.S., citing energy prices and a housing recession caused by defaults on mortgages to borrowers with poor credit records.
"This will be a relief for those who have overreacted to the U.S. subprime problems," said Alan Liao, an economist at Chinatrust Commercial Bank in Taipei. "Strong demand from China and the emerging markets is helping to offset the drop in the U.S."
Orders from China and Hong Kong combined climbed 20.3 percent in September, following August's 24.5 percent gain. Those from Europe jumped 28.6 percent and orders from Japan advanced 13.5 percent.
Orders from the U.S. rose 3.8 percent, matching the gain in the previous month.
Total orders climbed to US$30.9 billion in September, a record for any month, according to yesterday's report. Exports are equivalent to more than half of Taiwan's economy.
Electronics orders climbed 17.6 percent, while those for information technology and communications products surged 28.5 percent.
Taiwan's exports to the U.S. slumped 8.3 percent from a year earlier in September. Shipments to China and Hong Kong, jointly the island's biggest market, climbed almost 20 percent.
Industrial production gained 8.13 percent last month after rising 10.21 percent in August. That was lower than economists' expectations of an 11 percent gain.
For the January-September period, Taiwan's export orders increased 14.78 percent, while industrial output grew 5.87 percent.


Updated : 2021-10-18 01:01 GMT+08:00