Due to potential tariff agreements between the U.S. and China and the EU, electronic component sales sentiment surged in June to 121.5 points, according to the June Electronic Component Sales Trends (ECST) survey from the Electronic Components Industry Association (ECIA).
A score of above 100 represents growth.
This score is a stunning turn of events from the brutal results from April, when vendors were uneasy about tariffs, and in May, when sentiment stabilized but limited growth happened.
The leap is about 27 points higher than the expected score of 98.4 points forecast for June, ECIA said. Looking ahead, sales sentiment for July will dip only slightly to 116.5 points.
Tariffs, tariffs, tariffs
It is expected that the chaotic world of tariffs will continue to be the primary determinant of sales expectations, ECIA said. Additionally, tariffs appear to be reshaping the typical annual sales pattern to skew more heavily to the first half of the year due to vendors buying more products in anticipation of tariffs coming.
The unpredictability of tariff activity and communication is resulting in a highly unstable sales environment. With such elevated numbers in June, and likely in July given the forecast, compared to brutal numbers in April, it is prudent to remain in “crisis management mode for the foreseeable future,” ECIA said.
Big movers
Semiconductors saw the biggest swing in momentum in the electronic components’ sale sentiment, rising 40 points from May to June to 123.8 points. Passive components had an index score of 126.3 points and electro-mechanical/connector components saw a boost to 114.4 in June.
Manufacturer representatives had the most enthusiastic scores in the June survey in every component category while manufacturers also had robust scores all above 100 except for electro-mechanical. Distributors also saw a strong jump in June scores but were more conservative than the other groups.
End markets up too
The overall end-market jump passed the overall component index score increase coming in at 116.9 points in June, a 30.8 leap.
Electromechanical/connectors had a score of 122.3 and every other end-market score was above the 100-point threshold except for mobile phones.
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 components 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 outlooks, 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.
