Analog/Mixed Signal

ECIA: Optimism for electronic component sales for 2024

17 January 2024
Source: ECIA

Expectations for January 2024 are suddenly and strikingly optimistic according to respondents to the December Electronic Component Sales Trends (ECST) survey from the Electronic Components Industry Association (ECIA).

Expectations for January have shot up by 27.8 points in the overall index to hit an average of 105.6 points, ECIA said. This would be the strongest month-to-month growth in the history of the index except for one month in June of 2020. However, previous months have also speculated on big jumps in sale sentiment for electronic components only to be met with disappointing results.

ECIA said regardless of the actual results it is an encouraging sign to the start of 2024.

Meanwhile, The December index came in at 77.8 points, about 5.5 points below the modest outlook of 83.3 for December. For the full year, none of the major electronic component segments achieved an index score at or above 100, which would have indicated positive sales growth sentiment.

Hitting the 100-point threshold

During the December monthly survey, the electro-mechanical/connect category came close to topping the 100-point threshold. The January outlook for this segment is 114.4 points, a 30.7-point jump from December. Passive components are expected to hit 105.2 points, a jump of 24.4 points. Semiconductors will fall short of passing the 100-point market, coming in at 97.4 points in the January outlook, ECIA said.

Again, the ECIA cautioned that many times overall growth in the index fell far short of lofty expectations at least three times in 2023. All three of these major categories were expected to hit the 100-point threshold during the year but fell far short.

But even if the index gets half of the forecasted improvement in January, it will be a sign of a healthy start to the year.

Lowest expectations

While manufacturer representatives have the lowest expectations for January, even this group projects a 25-point improvement between December and January. The improvement between distributors and manufacturers was only marginally better than manufacturer representatives at 29.3 and 27.9 points.

In terms of segments, the highest overall forecast index score for January is reported for avionics/military/industrial at 136 points. The lowest expectation is for consumer electronics at 88 points.

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.

To contact the author of this article, email GlobalSpecEditors@globalspec.com


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