Electronic components sales sentiment stalls in attempted recovery
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ECIA’s survey reports sales trend slide in November 2023
As the end of 2023 approaches, it is clear the electronic components sales sentiment has stalled in its attempt to move into positive territory by the end of the year. That’s according to the results from the ECIA’s Q4 2023 ECST survey, which delivered “very encouraging results” compared to the monthly November survey, according to ECIA chief analyst Dale Ford.
“Following a healthy improvement between May and August 2023, the index has vacillated between 83 and 90 from August through the December forecast,” Ford further explained. “It appears that a hard reality is setting in with the November survey as the overall outlook for December is measured at 83.3, only a 0.5-point improvement from the November actuals. Efforts to push sales sentiment for electronic components over the 100-threshold indicating positive growth will continue into 2024.”
Solid improvement is expected for Q1 2024 with the number of participants reporting expectations of positive sales growth improving from 14% to 23%. On the other side, the share of participants reporting negative growth falls from 27% in Q4 to 18% in the Q1 outlook. The net score of positive and negative sales sentiment for the Q1 2024 outlook is the most positive since Q2 2022.
The ECST survey provides 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 the long term.