Taiwan's Hand Tool Exports Down 11% in Q2

Taipei, Sept. 19, 2008 (CENS)-Affected by U.S.'s sub-prime mortgage turmoil and global inflation, Taiwan's hand tool industry saw its production and export value for the second quarter of this year decline by 13% and 11%, respectively, from a year earlier to only NT$12.8 billion and NT$12.5 billion, according to statistics compiled by MOEA's Industrial Technology Information Services (ITIS).

However, ITIS indicated, despite posting lackluster export performance in the second quarter, Taiwan's hand tool sector has aggregated its production value at NT$28.3 billion for the first half of the year, slightly down 0.8% from a year earlier, and export value at NT$27.5 billion, up 2.3%. In the same span, the sector's unit export price also grew by 0.6% to NT$207.4 per kilogram.

ITIS emphasized that the sub-prime mortgage upheaval has apparently hurt the consumer market in the U.S., causing Taiwan's exports of DIY (do it yourself) tools to the country to decline by 7% in the first half. But, they still maintained a 10% growth in exports of auto repair tools to the U.S. in the same period.

ITIS noted that Taiwan's hand tool suppliers are expected to rally back in the second half, partly because they have actively moved to explore markets in East Europe, Australia and China and partly because British central bank is going to cut interest rates to stimulate local demand for new houses. Hence, Taiwan's hand tool industry's overall production is estimated at NT$64 billion and exports at NT$6.15 billion for entire the year, respectively up 8.4% and 9.6% from last year.