Taiwan Oct export orders down more than expected; outlook tough

TAIPEI: Taiwan’s export orders contracted more severely than expected in October on weak consumer demand hit by inflation and interest rate hikes, with the government warning that China’s insistence on a zero-COVID strategy would affect the outlook.

Export orders, a bellwether for global technology demand, shrank 6.3% in October from a year earlier to $55.4 billion, the Ministry of Economic Affairs said on Monday. Analysts had expected a drop of 1%.

October’s fall – the steepest since January 2020, when it dropped 12.8% – followed September’s annual contraction of 3.1%.