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Buyers' market will continue for awhile

Staff -- Purchasing, 5/17/2001

The slowdown in the electronics industry will continue until at least the middle of summer, according to Purchasing Magazine's survey of electronics buying conditions.

Only 21% of buyers responding to April's survey expect their purchase orders to increase over the next 90 days. Twenty-three percent say their orders will decline and about 56% say new orders will stay the same.

At the same time only 6% of buyers expect business will improve over the next 90 days, while 48% think it will worsen, according to the survey.

Buyers also expect to maintain their inventory levels indicating the slowdown of end-equipment demand is continuing in the second quarter. Only 3% will increase inventories, while 53% will maintain and 44% will reduce their parts inventories.

Component availability is high. Only 22% of buyers say there are parts in short supply.

Buyers are enjoying low prices. Prices fell in the first quarter and now 73% say prices are steady and 14% report tags are still declining.

Downward price pressure is likely .

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