Taiwan July export order growth seen slowing on cooling demand

A cargo ship is pictured at a port in Keelung, Taiwan, January 7, 2022. REUTERS/Ann Wang
  • For poll data click:
  • Orders median forecast +3.6% y/y (prior month +9.5%)
  • Data due Monday, Aug 22, 4:00 p.m. (0800 GMT)

TAIPEI, Aug 19 (Reuters) - Taiwan's export orders likely grew for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, a Reuters poll showed on Friday.

The median forecast from a poll of 11 economists was for export orders to rise 3.6% from a year earlier. Forecasts ranged for an expansion of between 1.1% and 7.5%.

The island's export orders, a bellwether of global technology demand, unexpectedly fell for the first time in two years in April. Orders shrank 5.5% from a year earlier to $51.9 billion, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions.

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But they returned to growth in May and June. In June orders went up 9.5% from a year earlier to $58.83 billion.

The government has predicted July orders to be between 0.4% and 3.1% higher than the year before.

Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.

The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (2330.TW), are a key part of the global supply chain for technology giants including Apple Inc (AAPL.O).

The data for July will be released on Monday.

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Poll compiled by Devayani Sathyan and Carol Lee; Reporting by Ben Blanchard; Editing by Jacqueline Wong

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