TAIPEI, TAIWAN – July export orders slid almost 9% from last year to $28.6 billion, the smallest drop in nine months, reports the Ministry of Economic Affairs (MOEA).

Factory output was down 8.11% year-over-year, the lowest since September of last year.

China and Hong Kong accounted for the greatest increase in orders for the month at 2.22% as the country experiences a growth in government spending and bank lending. U.S. orders dropped 12.51% from last year and 8.38% sequentially.

Electronics products dropped nearly 8% to $6.9 billion, while IT/communication slipped 3.6% to $6.6 billion. Despite the drops, the two segments were the largest in terms of July exports.

For the first six months, total export value was down 21.15% to $168.6 billion.

Orders are forecast to continue to improve in August, as the global recession continues to show signs of waning.