Apple effect gives boost to Taiwan's falling exports
Sixth straight monthly fall, but iPhones give Taipei hope for a turnaround
Taiwan's export orders fell far less than expected in September as the launch of Apple's latest iPhones boosted demand for the island's technology goods.
It was the sixth consecutive monthly fall, but the better-than-expected showing - export orders fell 4.5 per cent compared with a Reuters poll forecasting a 12.7 per cent drop - could signal the start of a turnaround for a struggling tech sector.
Taiwan's export orders are seen as a leading indicator of demand for Asia's exports and for hi-tech gadgets as they typically lead actual exports by two to three months.
Taiwan's economics ministry said the new Apple smartphones were behind the better-than-expected figures and that October orders would probably be better than September's value. It also said that the improvement in demand was also evident as companies' inventories were falling.
At US$41.35 billion, September orders topped the US$35 billion recorded in August to reach a nine-month high.
That will give the trade-reliant economy some encouragement going into the final quarter, when year-end shopping usually picks up. But Taiwan still faces the prospect that its economy contracted in the third quarter.