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Electronic component orders dip in July

Is this a momentary blip or a trend for the months ahead?



Electronic component orders dipped in July after reaching a two-year high in June, according to the monthly order index compiled by the Electronic Components Association (ECA). The 12-month average, comparing this year’s results to last year’s, continued an ascent that began last summer.

“We might be seeing manufacturers retrench after a huge demand caused by replenishment of low inventory levels and perceived shortages of electronic components”

ECA’s monthly report consolidates order information collected in confidence from leading electronic component manufacturers. Bob Willis, ECA president, sees a few different possibilities for the lull in growth last month.

“We might be seeing manufacturers retrench after a huge demand caused by replenishment of low inventory levels and perceived shortages of electronic components,” says Willis. “There are also tangible signs that the recovery is lagging compared to last year at this time, when it was just building up steam. Another possibility is that manufacturers are taking a bit of a timeout to get a better picture of future demand – that has happened a couple of times over the past year.”

www.ecaus.org

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