Growth in PMIs; Sales Improved in Q3, TTI’s MarketEye Forecast
October Purchasing Managers’ Indices Released
October PMIs have been released for major countries worldwide:
- Key regions saw a PMI improvement in October vs. September 2020 (chart 1)
- Global PMI reached its highest value since June 2018 (chart 2)
- Institute for Supply management’s U.S. PMI surged (chart 3)
- European PMIs improved, with the exception of UK and Russia (chart 4)
- Eurozone PMI reached its highest level since June 2018 (chart 5)
- Germany manufacturing activity continued to expand (chart 6)
- Asia improved with the exception of Vietnam (chart 7) as ASEAN composite PMI edged up but still remained below 50 (chart 8)
- China manufacturing activity continued to rise (chart 9)
Q3 Global Semiconductor Sales Up 11% Over Q2
The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors totaled $113.6 billion during the third quarter of 2020, an increase of 11 percent over the previous quarter and 5.8 percent more than the third quarter of 2019.
Global sales for the month of September 2020 were $37.9 billion, an increase of 4.5 percent over last month’s total and 5.8 percent more than sales from September 2019.
“The global semiconductor industry posted solid sales in the third quarter of 2020, reflecting normal seasonal trends and increased demand for semiconductor-enabled products, but significant market uncertainty remains due to the pandemic and other macroeconomic factors,” said John Neuffer, SIA president and CEO.
“Sales into the Americas remained strong in September, increasing by more than 20 percent year-to-year, and sales increased on a month-to-month basis across all major regional markets,” Neuffer said.
Regionally, sales increased on a month-to-month basis in China (7.9 percent), Asia Pacific/Other (3.3 percent), Europe (3.3 percent), the Americas (2.2 percent), and Japan (1.5 percent).
On a year-to-year basis, sales increased in the Americas (20.1 percent), China (6.5 percent), and Asia Pacific/All Other (2.9 percent), but decreased in Japan (-1.8 percent) and Europe (-9.8 percent).
U.S. September Electronic Supply Chain Shipments, Orders & Inventories
The U.S. Department of Commerce released its September “Factory Orders” report:
- Chart 18 summarizes the annualized (12/12) and 3-month (3/12) growth of the domestic electronic supply chain
- Electronic equipment book/bill dropped to near parity on a 3-month average basis (chart 19)
- Electronic equipment orders and shipments improved on both a 3/12 growth (chart 20) and dollar (chart 21) basis
- Electromedical, measurement and control equipment remains the major domestic end market (chart 22)
- Vehicle shipments have recovered from their early 2020 plunge (chart 23)
- Aircraft orders (chart 24) and shipments (chart 25) are still struggling
- Military electronics orders continued to drop in September (chart 26)
- Electromedical, measurement and control equipment orders and shipments continue to expand (chart 27)
- Communication equipment demand is increasing (chart 28) but computer orders and shipments have flattened (chart 29)