(Bloomberg) – Taiwan’s export orders have fallen the most since the peak of the global financial crisis more than a decade ago, a sign of deteriorating global demand for technology products.
Foreign orders to Taiwanese firms fell 23.4% in November from a year earlier, according to a statement by the Ministry of Commerce on Tuesday. That was nearly double the 12.8% drop economists had forecast in a Bloomberg poll and the sharpest drop since March 2009.
The slump in orders is the latest indication that rising inflation is weighing heavily on global demand for consumer goods ahead of the peak holiday shopping season. Taiwan’s exports fell more than 13% in November, far worse than economists had predicted, Treasury Department data showed earlier this month.
Data from China and South Korea paint a similar picture, with exports falling more sharply over the past month.
Taiwan’s orders for all major product categories declined, with optical products, plastics and base metals posting the largest declines. Electronic products, which includes orders for semiconductors, fell 15.2% from November 2021.
The government attributed the stronger-than-expected drop to slowing end-user demand, inventory adjustment by customers and the suspension of production in China due to Covid controls, according to the ministry’s statement.
As China lifts most virus restrictions this month, a rebound in demand there could help support Taiwan’s exports, analysts said.
“I expect export orders will remain bleak for another season, but China’s reopening will be positive for the supply chain,” Rick Lo, chief economist at Fubon Financial, said by phone.
–With the support of Chien-Hua Wan.
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