After a blockbuster April, the month of May revealed a notable slip in sales sentiment for electronic components according to the latest results of the Electronic Component Sales Trends (ECST) survey from the Electronic Components Industry Association (ECIA).
Despite a drop of nearly 12 index points, the overall score still registered a solid 112.3 points, the fourth consecutive month of positive overall sale sentiment, the ECIA said. A score of over 100 represents growth.
The good news is that survey respondents expect the sales environment to gain back some of the lost ground in June to reach an index score of 120.
Biggest hits
In May, the semiconductor segment saw a big hit, falling 18 points to fall below 113. Electro-mechanical and passive components also dropped but only by 10 and 6.8 points, respectively.
Overall sales sentiment scores from all three categories come in at a range between 106 and 118. While the results are not what was hoped for from the April ECST survey, the results point to a solid start for electronic components in the first half of 2024 — month-to-month improvements after six months of low performing.
Interesting development
After a few months where distributors, manufacture representatives and manufacturers were aligned in the market, in the May survey, distributors and manufacturer representatives delivered a negative drop in scores compared to April with declines of 17 and 12 points, respectively.
Meanwhile, manufacturers delivered an average increase of 4 points in the sentiment index.
The outlook for June shows a rebound in positivity for manufacturer representatives and more of a unified view of the world among these groups.
End market improvements
Overall end market delivered a strong gain in May improving by 8 points to reach 119.7 points.
Out of the five markets telecom mobile phones, telecom networks and consumer electronics dropped below the 100-point threshold. Mobile phones are expected to improve above 100 in June while. Automotive and industrial electronics were able to reach the 100-point mark in May for the first time since July of 2023. Avionics/military/space and industrial electronics continue to lead the score between 136 and 126 in May.
Market optimism is expected to improve in June to reach 126 points in the overall index.
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 information.
