December 2019 Purchasing Managers’ Indices Released
PMI leading indicators have been released (chart 1):
- Global PMI declined from 50.3 in November to 50.1 in December (chart 2)
- Both the USA ISM and IHS Markit PMIs declined (chart 3)
- Europe was mixed (chart 4), but overall Eurozone PMI declined from November (chart 5)
- Germany dipped further into contraction (chart 6) and France dropped to near zero manufacturing growth (chart 7)
- Most Asian countries except China saw a PMI improvement (chart 8) as the composite ASEAN PMI remained in manufacturing contraction but rose from 49.2 to 49.8 (chart 9)
- Japan PMI was flat in contraction territory at 48.8 (chart 10)
- China PMIs weakened slightly (chart 11)
- Taiwan (chart 12) and South Korea (chart 13) moved back into modest manufacturing expansion (PMI>50)
Sources: www.markiteconomics.com and www.instituteforsupplymanagement.org/
Worldwide Semiconductor Sales Decreased 10.8% Year-Over-Year to $36.7 Billion in Nov. 2019 (Charts 14-26)
The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors reached $36.7 billion for the month of November 2019, a decrease of 0.3 percent from the previous month’s total and 10.8 percent lower than the November 2018 total of $41.1 billion.
Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents U.S. leadership in semiconductor manufacturing, design, and research, with members accounting for approximately 95 percent of U.S. semiconductor sales.
“As 2019 winds down, global semiconductor sales continue to lag behind last year’s total, but we’ve begun seeing indications of the modest rebound projected for next year,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Regionally, the Americas market was the only major market to grow on a month-to-month basis, but sales into the Americas were down substantially year-to-year.”
Source: www.semiconductors.org
Passive Component Makers Expect Strong 5G-Driven Demand in 2020
Passive components suppliers and clients have kept their inventory levels low in 2019 amid US-China trade tensions. But now inventory is running low, and clients are starting to rebuild their passive components stocks with confidence boosted by a better outlook for 5G-driven demand in 2020.
U.S.-China trade tensions may be easing, but uncertainty is still ahead prompting manufacturers to continue their relocation out of China. Inventory levels in the passive components sector are running low, with clients now starting to replenish their stocks, promising tight supply of capacitors, resistors and inductors, according to industry sources.
Supply chain assets continue moving out of China despite a trade truce: U.S.-China trade tensions seem to be easing with both sides set to sign an agreement soon, but there is still so much uncertainty lying ahead that many IT supply chain players have no choice but continue their manufacturing relocation out of China, according to industry sources.
Source: www.digitimes.com