Business improves
Staff -- Purchasing, 10/21/2004 2:00:00 AM
Business picked up toward the end of the third quarter and indications are the fourth quartet will get off to a strong start for the electronics industry.
Forty-nine percent of buyers say business improved in September compared to August, according to PURCHASING magazine's monthly survey of electronics business conditions. The Business Activity Index registered a healthy 64.7 up from 52.8 the month before.
Buyers also say they expect to be buying more parts over the next 90 days. The forward demand indicator registered 76 in September, up from 69.2 in August. Fifty-eight percent of buyers say they expect to increase their ordering while only 6% say orders will decline.
While buyers say business is improving, it is not affecting prices so far. Only 14% said semiconductor prices were increasing in September while a hefty 65% reported prices were stable.
Longer term 24% of buyers say they expect chip tags to rise over the next 90 days while 68% says tags will stay stable.
While supply should tighten later this quarter, prices will remain steady for most components. There are no killer applications that will overwhelm component demand although shipments of computers, cell phones, communications and medical equipment will be healthy. Chip capacity will be ample.
Business improves
07/13/2005Business improves
11/16/2005
Now Playing: 