8/10/2023 0 Comments Production tool supply sold“Industrial and high-tech demands are pushing out, as a slowdown is clear,” an electrical, appliances and components executive told the ISM. Electronics manufacturing output fell in March, decreasing a sharp 5.9 percent from the prior month and 1.7 percent from the year-ago period.The European economy grew during the first quarter of the year, edging up 0.1 percent in the euro area and up 0.2 percent in the EU.The manufacturing PMI rose 0.8 percentage points in the last month, but not enough to move back into expansionary territory. manufacturing sentiment contracted for the fifth consecutive month in April. The debate over the debt ceiling likely contributed to some of this decline. consumer sentiment fell in May, declining nearly 7 percent. Leading economic indicators continue to suggest a high risk of recession this year, even if the timing continues to push later into the year.Īdditional data in the May 2023 IPC Economic Outlook show: At the same time, cost pressures continue to decline, as have supply chain barriers, which is helping companies to satisfy those orders. The number of firms reporting that orders are expanding is declining, but the majority of firms continue to report that orders are rising, and they expect that to continue in the months ahead, IPC reported. IPC’s research points to a slowing environment, but still a growing environment. May performance was clearly weaker compared to April.” Slowing but growing A larger number of industries contracted strongly, as the proportion of manufacturing GDP registering a composite PMI calculation at or below 45 percent - a good barometer of overall manufacturing weakness - increasing to 31 percent in May, compared to 12 percent in April. “Seventy-six percent of manufacturing gross domestic product (GDP) is contracting, up from 73 percent in April. “Price instability remains, and future demand is uncertain as companies continue to work down overdue deliveries and backlogs,” said Fiore. Production moved back into expansion territory in May, increasing 2.2 percent to 51.1. Although this seems positive, price uncertainty adds to manufacturers’ overall cautious outlook for H2. The index fell back into decreasing’ territory - in dramatic fashion - after one month of increasing prices. The ISM’s prices index declined by 9 percent to 44.2. As soon as new orders pick up backlog is likely to expand as well.” The problem is no new orders and a low backlog. “Material hasn’t flowed this well in many years and lead times have declined. The supply chain is poised for growth once demand picks up, said Fiore. Hiring has slowed in response to continued global uncertainty on inflation and unrest in Europe.” “Our scientific instrumentation business continues to be weakened by lending to support capital purchasing, while services and consumables stay on track and continue to increase in some markets. “Overall impact for our business is mixed,” a tech executive told the ISM. Component makers have maintained price hikes made during the semiconductor shortage and fabs, such as TSMC, have announced further price increases. During past cycles of excess inventory, customers sold components into the open market which depressed prices. Customers are holding on to this inventory fearing future shortages. electronics industry contracted in May, component makers and distributors that gathered for a recent trade show see a soft landing from declining demand fueled, in part, by a build up of inventory at OEM and EMS customers. Both the United States and Europe are enjoying record low levels of unemployment.Īlthough the U.S. Labor markets remain extremely strong, said Shawn DuBravac, IPC chief economist, despite the widely held view that recession is imminent. The IPC trade association also pointed to the jobs market in its May Economic Outlook.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |