Taiwan's Export Order Value Again Hit Monthly Record High of US$38.18B. in July

The value of export orders received by Taiwan's manufacturers and traders reached US$38.18 billion in July for an annual rise of 5.7%, the sixth consecutive monthly growth but down US$630 million from the previous month, according to the statistics released by Taiwan's Ministry of Economic Affairs (MOEA).

The export value in July was the  highest on record for the month, yet still less than the expected US$40 billion. In the first seven months, the export order value expanded to US$258.64 billion, also the highest of its kind.

L. C. Lin, director of the Department of Statistics under MOEA, indicates that the directional movement index (DMI) of export order value in July stood at 50.4, just a little above 50, the median of the index. In the same month the DMI of major export items varied with electronic products at 54.3, information communication technology (ICT) products (47.4), precision instruments (46.7), basic metals (39.3), plastic & rubber products (58.3), machinery (43.9), and chemicals (51.9).

The export orders for ICT products in July posted a sizable monthly drop of 10%, which made the annual growth of such orders turn negative from positive. Nevertheless, the order value of machines in the same month hit a record high of US$1.98 billion for a sharp annual rise of 18.1%, thanks to operational expansion of overseas Taiwanese manufacturers.

Orders for machines came mainly from China and Hong Kong, which together took nearly 30% of the total, followed by those from the U.S., Europe, ASEAN, and Japan.

Lin predicts that the export orders in August may remain the same as that in July at about US$38 billion. (JL)