Taiwan’s export orders contracted at the slowest pace in more than a year, delivering an encouraging sign for global trade that was led by a rebound in demand from China.

Orders to Taiwanese companies from overseas clients declined 4.6% in October compared to the same month last year, according to a statement from the Economics Ministry in Taipei on Monday. That was the smallest decline since September 2022 and milder than the 7.6% fall forecast by economists in a Bloomberg survey.

In an indication China’s factories are ramping up production ahead of the peak holiday sales season, demand from China and Hong Kong — Taiwan’s second-largest source of orders after the US — rose roughly 1.2%. That was the first increase since March 2022.

Monday’s numbers add to the cautious optimism expressed by the finance ministry earlier this month over trade data. Exports are likely to grow between 3% and 6% this month, ministry officials said, as demand for technology products recovers.