Philippine Exports Decline the Least in Six Months

July 10 (Bloomberg) -- Philippine exports fell the least in six months, adding to signs the global recession that hurt demand for Asian-made electronics is easing.

Shipments abroad declined 27 percent from a year earlier to $3.09 billion in May after dropping 35.2 percent the previous month, the National Statistics Office said in Manila today. That compares with the median forecast for a 32 percent plunge in a Bloomberg News survey of nine economists.

The central bank cut its benchmark interest rate to a record low of 4 percent yesterday to revive the economy after the global slump crimped orders for Philippine-produced Intel Corp. computer chips and other goods. The government predicts growth will accelerate in the coming quarters after slumping to a decade low of 0.4 percent in the first three months.

“The bottom happened in the first quarter and we are now seeing an improvement,” said Arthur Young, chairman of Semiconductor and Electronics Industries of the Philippines Inc., an industry association. “There is pretty good strength in demand from certain markets such as China because of their stimulus plan.”

China’s new loans surged almost fivefold in June from a year earlier, helped by a 4 trillion-yuan government stimulus plan and a loosening of lending restrictions to spur growth. Japan’s industrial output rose for a third month in May and Australian consumer confidence jumped in July to the highest level in 19 months.

Semiconductor Sales

Electronics sales, which make up more than half of Philippine exports, fell 26.8 percent to $1.81 billion in May from a year earlier after dropping 33.2 percent in April.

The Philippine association raised its forecast for exports this year two weeks ago, predicting a drop of 15 percent to 20 percent compared with a previous estimate for a decline of as much as 30 percent, Young said.

Worldwide semiconductor sales rose 5.4 percent in May from April, according to the San Jose, California-based Semiconductor Industry Association.