Preston Stanley Asset Management - Taiwan Export Orders Decline
Preston Stanley Asset Management - Taiwan export orders decline as demand for consumer electronics wanes.
TAIPEI, Taiwan, January 25, 2019 (Newswire.com) - In December last year, Taiwan export orders declined at the most rapid pace in two and a half years. Analysts at Preston Stanley Asset Management say this could be a growing trend throughout Asia during the first six months of 2019 as Asian economies deal with the impact of the US-China trade war and waning demand for consumer electronics.
The decline in export orders was greater than analysts at Preston Stanley Asset Management had expected and could indicate that the damage done by decreasing foreign demand is severe.
Preston Stanley Asset Management analysts warned that economies relying heavily on exports would need to exercise greater caution as the US-Sino trade war spills over into other regions in Asia.
Companies, including many that are Taiwanese owned, with manufacturing operations in China that produce goods for the US market are subject to US President Donald Trump’s punitive import tariffs levied against $250 billion worth of Chinese made goods.
Disruptions to the global supply chain and weakening demand as global economic growth cools are already affecting several Asian economies, with Japan’s export orders shrinking at their most rapid pace since 2016 in December last year.
Preston Stanley Asset Management analysts say Taiwan’s export orders are usually a strong indicator of the level of demand for Asian electronic exports.
Taiwan’s Ministry of Economic Affairs has expressed a lack of optimism for Taiwan’s export prospects in the first quarter of this year. The Ministry expects export orders to fall by 11.8 percent on an annual basis this month.
Source: Preston Stanley Asset Management
Categories: Growth and Expansion