Electronic component sales disappointed in the month of September as the industry index fell short compared to recent months, according to the latest Electronic Component Sales Trends (ECST) survey from the Electronic Components Industry Association (ECIA).
However, the good news is that among survey participants, October is looking to be more positive.
In September, the overall score of sales sentiment for electronic components fell 3.6 points to 86.7. In October, it is forecast to jump to 94.0, which would be the highest level since July of 2022 and only six points below the 100 threshold, which indicates sales growth. ECIA said that results have typically fallen short of expectations in recent months, so this number may not hold.
Overall, the electronic components industry is positioned to potentially reach a breakeven point by the end of the year with broad-based growth returning at the beginning of 2024.
Encouraging and discouraging results
The most encouraging results in September were reported in the electromechanical/connector components improving by 13.8 points to reach 98.7 in the month. In October, growth is expected, potentially reaching the coveted 100-point threshold.
On the other hand, the ECIA found that semiconductors lost all the gains from August falling to a score of 77.4 points. The good news is that ECIA forecasts semiconductors in October to increase by 15.7 points. However, again recent months have come in short of expectations.
Semiconductors were not the only ones as passive components also saw all the gains in August erased in September with slight expectations expected in October.
Distributor disconnect
Once again, the sales sentiment between manufacture representatives, manufacturers and distributors persisted in September. This trend began in April of this year but widened substantially in June and July before narrowing in later months.
Distributors are at or above in nearly every category in September while manufacturers are also strong and come in at about 100. By contrast, manufacturer representatives’ scores range between 44 and 87. The differences are difficult to figure out but ECIA said it may be due to manufacturers and distributors’ world fairly aligned with the end market demand while manufacture representatives are struggling in the current market.
About the ECIA ECST report
The ECST survey provides highly valuable and detailed visibility on industry expectations in the near-term through the monthly and quarterly surveys. This “immediate” perspective is helpful to participants up and down the electronics components supply chain. In the long-term, ECIA shares in the optimism for the future as the continued introduction and market adoption of exciting innovative technologies should motivate both corporate and consumer demand for next-generation products over the long term.
The complete ECIA ECST report is delivered to all ECIA members as well as others who participate in the survey. All participants in the electronics component supply chain are invited and encouraged to participate in the report so they can see the highly valuable insights provided by the ECST report.
The monthly and quarterly ECST reports present data in detailed tables and figures with multiple perspectives and covering current sales expectations, sales outlook, product cancellations, product decommits and product lead times. The data is presented at a detailed level for six major electronic component categories, six semiconductor subcategories and eight end markets. Also, survey results are segmented by aggregated responses from manufacturers, distributors and manufacturer representatives.
Interested in reading the entire ECST report? Click here for more info.
