Taiwan export orders in December surprise with big upswing

TAIPEI - Export orders in Taiwan grew 7.4% in December, from 0.8% in November, beating market expectations of 2% by a large margin. The strong increase was mainly driven by orders for information and communication (ICT) products and electronics. For full year 2013, export orders managed to set a record high, up 0.4% from 2012.

However, ANZ Bank suggests the upside surprise does not fully signal a recovery of the domestic economy, as Taiwanese manufacturers have increasingly outsourced their production abroad. However, it does signal a general recovery of external demand. “Orders from the US and Europe gained 6.5% y/y and 11.0% respectively in December. Orders from Mainland China and Hong Kong rose 6.9%,” ANZ says. “Orders from ASEAN and Japan grew 4.8% and 9.3%.
“Our core view remains that Taiwan’s export outlook is generally positive, buoyed by the recovery of global demand, especially from advanced economies.” www.live.anz.com (ATI).