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©fouquin-christophe-dreamstime.com Electronics Production | August 30, 2012

IPC: Electronics supply chain moving in positive direction

Year-on-year sales growth across the global electronics supply chain was mixed in the second quarter of 2012, but is now moving in a positive direction, according to IPC’s quarterly report, Electronics Industries Market Data Update.

The summer 2012 edition, just published, reports the latest global and regional developments in the economy and the electronics industry, including select findings from IPC’s industry statistical programs and leading indicators. According to the report, reduced growth forecasts from China and continued worries about Greece reinforced concern about a global economic slowdown. Although domestic growth in China is showing resilience, exports remained sluggish in the second quarter due to the slow recovery in the U.S. and contracting economy in Europe. Leading indicators in North America show signs of stalled growth in the economy in the second quarter, but point to a resumption of modest growth in the second half of 2012. Year-over-year PCB and semiconductor sales growth rates in North America remained negative in the second quarter of 2012, while EMS, wet chemistry and solder were positive, showing signs of recovery. The North American PCB book-to-bill ratio remained above parity in the second quarter. At the global level, sales growth in the electronics supply chain slowed its downward trend. The downward headwind afflicting the global economy appears to be spilling into the electronics manufacturing sector, slowing the industry’s earlier rebound. Second quarter indicators and the first July 2012 numbers available for North America predict slow growth for the next quarter.
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