Taiwan’s export orders are likely to have rebounded in May. In the previous month, export orders growth had slowed to -11.1 percent year-on-year from March’s -4.7 percent year-on-year. The slowdown in April was mainly due to electronic, information and communication products. But these categories are expected to have recovered in May, given the rebounding sales that reported by major tech firms.
Moreover, May had additional working days this year. Therefore, export orders are expected to have grown slightly on a month-on-month basis. On a year-on-year basis, growth is likely to have recovered to -5 percent in May from April’s -11.1 percent y/y, said Societe Generale in a research report. Positive base effect is likely to have provided additional help.
The material has been provided by InstaForex Company – www.instaforex.com