Taiwan’s export orders likely recovered in June, albeit modestly

In June, the Nikkei Taiwan manufacturing PMI rose to 50.5 in June from May’s 48.5, which was a seven-month low. The figures indicate that new orders recovered moderately. In the meantime, top producers have registered stronger growth in sales in June. It appears that the electronics-led trade recovery has continued in June, although at a moderate pace.

According to a Societe Generale research note, export orders are likely to have extended its sequential growth in June, at a similar rate to that of May. In year-on-year terms, a negative base effect is expected to hide the strength of the rebound and rise just modestly to -4 percent from -5.8 percent, added Societe Generale.