Taiwan export orders post first decline in 19 months

TAIPEI, Mar 20 (Reuters): Taiwan's export orders in February unexpectedly fell 3.8 per cent from a year earlier, mainly due to Lunar New Year distortions, although broader demand for the island's technology sector appeared to remain intact.

Export orders in February stood at $32.45 billion, with the on-year pace easing from January's 19.7 per cent, data from Taiwan's economics ministry showed on Tuesday. A Reuters poll had predicted a gain of three per cent.

There were fewer working days in February compared with a year earlier as the long Lunar New Year break was in mid-February, while in 2017 it began in late January.

It was the first on-year decline in orders since July 2016.

For January and February combined, export orders in Taiwan's trade-reliant economy totalled $75.52 billion, rising 8.3 per cent from a year earlier, the data showed, slower that the 12.7 per cent growth seen in the previous corresponding period.

Analysts prefer to look at combined January and February data due to distortions from Lunar New Year.

Export orders in Taiwan, a key player in the global technology supply chain, are seen as a leading indicator of actual shipments two to three months ahead and a gauge of demand for Asia's high-tech gadgets.