Taiwan's export orders likely to grow for third consecutive month

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Taiwan's export orders likely to grow for third consecutive month

TAIPEI Taiwan's export orders were likely to grow for a third consecutive month in July, but at less than half the pace of the previous month as global demand cools, according to a Reuters poll on Friday.

Export orders rose 3.6 per cent from a year ago, according to a poll of 11 economists. The projections ranged from 1.1 per cent to 7.5 per cent.

Orders dropped by 5.5 per cent from a year ago to $51.9 billion, taking a larger than expected hit from COVID 19 lockdowns in China and broader supply chain disruptions.

They returned to growth in May and June. In June orders went up 9.5 per cent from a year ago to $58.83 billion.

The government has predicted that July orders will be between 0.4 per cent and 3.1 per cent higher than the year before.

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

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

The data for July will be released on Monday.