Electronic component orders soared in June to their highest point in two years, according to the monthly order index compiled by the Electronic Components Association (ECA), Arlington VA. The 12-month average, comparing this year's results to last year's, continued a sharp ascent that began last summer.
ECA's monthly report consolidates order information collected in confidence from leading electronic component manufacturers. Although ECA's monthly index typically exhibits the same movement as the Dow Jones stock index, June marked an uncharacteristic departure: As stocks fell last month, the ECA order index continued rising.
"Up until last month, the patterns for Dow Jones and the electronic component index have been eerily similar," says ECA president Bob Willis. "I believe we are seeing a combination of increasing lead times for electronic components and doubling of orders due to a fear of shortages. Time will tell whether this is a true indicator of a continued electronics comeback or a miscalculation of future demand."