Component sales sentiment slide continues
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September slips, but glimmers of hope emerge for October, says ECIA
Electronic component sales sentiment continued a decline that started in May 2022, according to a tracking report compiled by the Electronic Components Industry Association (ECIA). The ECIA Electronic Component Sales Trend index dropped again this September – falling from 86.0 in August to 82.3.
However, the results varied widely by product segment. Electro-mechanical components saw a steep decline, as it fell by 16.7 points in September, while the semiconductor index improved by 7.2 points. Passive components were fairly stable with a dip of 1.7 points, the ECIA reports. Measurements below the benchmark level of 100 indicate negative sales growth sentiment.
Lose September gains
“The October outlook provides some hope in the near-term as the overall index is expected to rebound by 5.7 points,” says ECIA chief analyst Dale Ford. “This is driven by strong rebounds projected for electro-mechanical and passive components of 10+ points. Semiconductors are expected to lose half of their September gains and fall by 3.6 points in October. While encouraging, the October index still reaches only 88.0 which leaves it solidly in the category of declining market growth.”
The ECST survey provides highly valuable and detailed visibility on industry expectations in the near-term through the monthly and quarterly surveys. This “immediate” perspective is helpful to participants up and down the electronics components supply chain. In the long-term, ECIA shares in the optimism for the future as the continued introduction and market adoption of exciting innovative technologies should motivate both corporate and consumer demand for next-generation products over a growth cycle that still appears to have legs to go an extended distance.
The complete ECIA Electronic Component Sales Trends (ECST) Report is delivered to all ECIA members as well as others who participate in the survey. The monthly and quarterly ECST reports present data in detailed tables and figures with multiple perspectives and covering current sales expectations, sales outlook, product cancellations, product decommits and product lead times.