Taiwan’s export orders signal stabilising tech sector

TAIPEI – Taiwan’s export orders in February showed improvement in the high-tech sector, with total export orders declining by 7.4% compared with a fall of 12.4% in January. On a seasonally adjusted basis, total orders declined 2.4% month-on-month.

Information and communications technology (ICT) orders declined by 1.8% on-year in February,  from 11.2% in January, as demand from the US and Europe stabilised. Electronic parts contracted 1.5%, improving from a 7.9% drop.
ANZ Bank says this is consistent with the North America SEMI book-to-bill ratio, which has remained above parity for two consecutive months, pointing to the stabilisation of the technology products supply chain.
Some export sectors remained weak. Basic metals contracted 17.3% y/y in February, as prices remained depressed. Chemicals declined 4.1% y/y while plastics and rubbers contracted 17.9%, largely due to lower oil prices. Orders of precision instrument plunged 32.5%, reflecting weak demand and increasing international competition.  www.live.anz.com (ATI).