Electronic Component Orders Take Small Dip in May

Electronic component orders took a small dip in May, according to the four-to-five week average index compiled by the Electronic Components, Assemblies & Materials Association (ECA). The 12-month average, which compares order growth to the previous year, remained flat.

The results aren't surprising given predictions this spring of slower growth in 2007 for worldwide electronics production. Still, there are a few positive signs:

- The Japan Equity Research division of JPMorgan predicted that electronic components are on the upswing, fueled by increased production of digital home electronics, PCs, cell phones and other devices.
- Worldwide sales of semiconductors were up 3.2 percent in March compared to last year, according to the Semiconductor Industry Association (SIA).
- Bluetooth devices look as if they are gaining traction, with a predicted 33-percent annual growth rate over the next three years according to IC Insights.

"The market this year is performing like an average major league baseball player," says Bob Willis, ECA president. "There are some minor ups and downs from month to month, but overall the batting average is steady and predictable. I don't expect the market to be the equivalent of an all-star this year, but it shouldn't do anything negative enough to concern most managers."

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