Industry sentiment returns to ‘positive’ on electronic components
EP&T Magazine
Electronics Supply Chain component connector electro-mechanical electronic IP&E passive salesECIA sales trend survey reveals uptick for the first time in 21 months
Good news appears to be on the horizon for electronic componens, as sales in February moved into positive territory for the first time in 21 months, driven by momentum in interconnect, passive and electromechanical (IP&E) devices, according to the ECIA.
Driven by strong improvements in the index scores for passive components and electro-mechanical/connector components the overall Electronic Component Sales Trend (ECST) index moved into positive sales sentiment territory with a score of 100.8, noted ECIA’s chief analyst Dale Ford.
“It has been 21 months since the overall sales sentiment index topped 100,” explained Dale Ford, ECIA’s chief analyst. “The index languished at an average of 85.2 for the prior year, unable to sustain any meaningful improvement until a positive surge to begin 2024 started in January. This momentum carried over into February with the encouraging outcome of an overall positive sentiment score. The positive momentum is projected to carry into March with a projected improvement of 9 points in the overall average to nearly reach 110 points.
Index score delivers a positive 1% outcome
“The longer-term outlook presented by the Q1 2024 ECST survey delivers more positive news for the electronic components industry,” Ford continued. “In Q1 2024 the overall net index score delivers a positive 1% outcome. The best part of the quarterly survey is the outlook for Q2 2024, as positive energy sweeps across the market and delivers a net positive score of 33%.”
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 the long term.
