Retail activity in Taiwan took a hit in June, as sales dropped by 2.9% to approximately NT$390 billion or US$13.3 billion, marking the third consecutive month of decline.
The slump was consistent with the projected range of a 0.4% to 3.4% decrease in sales. The most significant dip was observed in the automotive sector, with car, motorcycle, and auto parts and accessories sales plummeting by 17.3% year on year. This industry-wide slowdown was exacerbated by customers holding off on purchases while awaiting the outcome of Taiwan’s tariff discussions with the United States.
Meanwhile, the fabric and clothing industry also suffered, recording a 6.3% drop in sales. This decline was partly due to a reduction in the number of holidays in June. Similarly, department stores experienced a 3.6% drop in sales.
The food and beverage industry, which had previously enjoyed three months of consecutive growth, reported a 2% decrease in sales. According to the Ministry of Economic Affairs, this decline was largely driven by a slump in restaurant sales.
Cumulatively, the country’s retail sales slid by 1.6% for the second quarter and 0.4% for the first half of the year. Looking ahead, the Ministry of Economic Affairs predicts that retail sales growth in July could range from a 2% decline to a 1% increase.
What was the overall decline in Taiwan’s retail sales in June?
Sales fell by 2.9% to approximately NT$390 billion or US$13.3 billion.
Which sector experienced the most significant sales decline?
The automotive sector, which includes cars, motorcycles and auto parts and accessories, experienced the most steep decline with a drop of 17.3%.
What are the projected retail sales for July as per the Ministry of Economic Affairs?
The Ministry expects the retail sales growth for July to range between a decrease of 2% and an increase of 1%.
