Taiwanese export orders data for the month of September is set to release tomorrow. According to a DBS Bank research report, export orders are likely to have shrunk for the 11th straight month, by 5.2 percent year-on-year. Overseas demand conditions continued to be sluggish, in the context of global growth deceleration and the new round of U.S. tariff hikes on Chinese products that took effect in September.
“It remains to be seen whether Taiwan’s exports and industrial production can continue to hold up, underpinned by the effects of investment repatriation and trade diversion”, said DBS Bank.
Earlier data indicated that exports fell to -4.6 percent year-on-year in September from August’s 2.8 percent; however, the sequential growth stayed strong at 0.8 percent sequentially.
“We expect industrial production to post 0.7 percent in September, slower than 2.3 percent in August but still in the positive territory”, added DBS Bank.
