Purchase orders to increase
Staff -- Purchasing, 3/18/2004 2:00:00 AM
Electronics buyers responding to February's survey of business conditions report business is strong and are optimistic it will improve.
For the second straight month, PURCHASING magazine's Forward Demand Index, a measure of electronics buyers' future purchase order expectations, registered over 80. It also marks the eighth consecutive month the indicator registered over 70.
The Business Activity index for February, which measures current business activity, fell about three points in February to 68.6. However, anytime the index is over 50, business is improving.
Buyers also report higher prices. The price index was 70 in February, up from 61 in January. A hefty 47% of buyers say prices increased. In January 37% reported higher prices.
Sixty-five percent of buyers say parts availability is normal. That's up from 50% in January. Many leadtimes had stretched toward the end of 2004, but eased back in the first quarter.
Buyers can expect leadtimes to stretch again later in the year. As that happens, there will be some price increases as well. The good news is that there will be no severe shortages or steep price increases in 2004.
Electronics buyers will increase orders
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