There was a drop in the export orders of Taiwan for an 8th consecutive month in June, with firms all over the world increasingly hesitant to invest more in machinery as the trade war between the two giant countries i.e. China & the United States wears on.
On Monday, the data showed a steep decline in orders from Japan & China than the previous month, and shrinkage from Europe, though the demand in the United States for Taiwan products increased for the first time in months, mainly because of supply chain adjustments.
When combined with a sharp fall in the preliminary exports of South Korea reported earlier in the day, the readings give an indication of further strains on Asia’s trade-reliant economies in the approaching months, in particular to those which are highly dependent on sales of high-technology electronics & memory chips.
There was a drop of 4.5 percent in the orders in June as compared with the last year’s $38.5 billion, data from Taiwan’s Ministry of Economic Affairs reflected.
That critically lagged a prediction of a 0.83 percent decline in a Reuter’s poll of analysts but was a minor moderation from a 5.8 percent drop in May.
The ministry anticipates a decline of 6.7 to 6.9 percent in the July year-on-year.
The ministry stated that impacted by the trade spat between the United States & China, the global economy is relaxing & clients give their orders with a hesitant and conservative approach.
International orders for machinery witnessed the greatest drop, collapsing 22.3 percent while electronics dropped 4.3 percent, although telecom products rose.
But, the ministry stated that orders could boost in the second half, due to rising demand for the 5th generation telecommunications (5G) technology & as retailers prepare for the ultimate year-end shopping season when key smartphone vendors are set to launch novel products.