Component orders show stability - Components

Electronic News, June 17, 2002 by Bernard Levine

Let's here it for stability!

Electronic component orders remained relatively stable midway through the second quarter, according to the monthly index from the Electronic Components, Assemblies & Materials Association (ECA). The four- to five-week index and the 12-month moving average converged in May, indicating industry stability.

"The index shows that we might be gaining some stability after the mercurial growth in 2000 and the low points of Q2 2001," said Bob Willis, ECA president. "It's still early to judge anything from the separate small downturn in the four- to five-week index."

Other industry indicators, such as the increase in manufacturing productivity and the semiconductor industry's positive book-to-bill ratio, point to a conservative recovery for electronic components, he indicated. "Most market information suggests slow growth through the end of the summer," Willis said. "As the shelf life of many products in inventory expires and new products and designs come online, demand will increase in the late third quarter through the end of the year."

ECA represents manufacturers and producers of passive and active electronic components, component arrays and assemblies, and materials and support services. It is a sector of the Electronic Industries Alliance (ETA).