ECA component order index continues upward momentum
Oct 17, 2007
Electronic component orders rose in September for the fourth consecutive month, 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, also moved slightly upwards.
The ECA report reflects the presentations from analysts last week at CARTS Asia 2007 in Taiwan:
-- DECISION Inc. estimated that the worldwide passive component market would grow by 3.6 percent between 2006 and 2011.
-- Technology Forecasters Inc. said that EMS revenue will grow by nearly 12 percent between 2006 and 2011, while ODM revenue will rise by 11.4 percent during the same period.
-- J.P. Morgan predicted that worldwide PC shipments will grow by 11.6 percent this year and handset sales will increase by 17.6 percent.
While enthusiasm at CARTS Asia 2007 was tempered by economic issues, particularly volatile energy costs, the overall picture is positive according to Bob Willis, ECA president.
"There is still an air of caution, particularly among U.S. CEOs," says Willis, "but general economic factors and specific industry indicators look good for the remainder of this year."