PURCHASING's Business Activity Index for electronics-consuming companies has crept back up to 58.2 after falling to a dangerously low 52.6 in July. Remarks from electronics buyers support the renewed growth scenario, although many express a high level of caution around the sustainability of their latest gains. Example: The purchasing pro for a Connecticut-based technology firm remarks that "backlog is filling quickly, but with all the 'gloom and doom' in the media, we can't/won't consider it a valid sign of sustained recovery." Several buyers remark that backlog rates are starting to rise at their companies. Others say they are now meeting, even exceeding, management's sales targets. For example, the commodity manager at an Illinois-based electronics company says: "Over the last two months, we have seen some product lines exceed plans for the year."

While many buyers talk of tightening component supplies, few cite specific product lines. For the most part, they blame sourcing troubles on such things as supplier understaffing, tight inventories, and on shorter leadtime requirements from their own customers.