Taiwan’s export orders likely to have rebounded in July, albeit moderately

Taiwan’s export orders are likely to have recovered in the month of June; however, at a moderate pace. The Nikkei Taiwan manufacturing PMI had increased for the second straight month in June to 51 from June’s 50.5. New export orders PMI had registered the highest print in 18 months in July.

In the meantime, top tech manufacturers in Taiwan recorded a moderate decline in sales in July in month-on-month terms. This reversed less than one-third of June’s sharp increase. Therefore, export orders are expected to have recovered just a bit in July in month-on-month terms.

Meanwhile, in year-on-year terms, the decline in export orders is likely to continue to narrow to 2.2 percent in July, as compared with June’s 2.4 percent, said Societe Generale in a research report.