Taiwan's apparel industry is still experiencing a contraction in output as export demand weakens. July's total apparel production fell 10.2 percent to 827,000 dozen, placing output at almost half the volume of July 2003. Total January through July apparel output declined 7.9 percent to 5.384 million dozen.

Apparel exports to Taiwan's top market, the U.S., are continuing to erode. June exports only totaled 66.7 million U.S. dollars, representing a 27.86 percent year-on-year decline. Total first half 2007 apparel exports to the U.S. dropped 16.66 percent to 397.571 million U.S. dollars -- this was less than Peru's shipments.