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


Walt D. Custer

Walt Custer

Walt Custer is an industry analyst focused on the global electronics industry. Prior to forming Custer Consulting Group he was Vice President of Marketing and Sales for Morton Electronic Materials, a global supplier of specialty chemicals and process equipment for the PCB industry.

Custer has been a member of the IPC trade organization since 1975 where he received both the President's and the Raymond E. Pritchard Hall of Fame Awards. He is currently a member of the IPC Executive Market & Technology Steering Committee. Custer is also a Director of the EIPC European PCB trade organization.

He authors regular “Market Outlook” columns for Global SMT & Packaging magazine, the Journal of the HKPCA and the TTI MarketEYE website.

View other posts from Walt D. Custer. View other posts from Walt D. Custer.

News & Information

Lead Time Trends
Current average manufacturer lead times for parts you depend on

Supply Chain News
Coverage of global conditions impacting manufacturers

Raw Materials Prices
Trends in feedstock metals, oil and other key materials

Podcasts

Listen to our new podcast, TTI Distribution Download! TTI Specialists, supplier partners and more share their expertise and insight on the electronics industry. 

Apple | Spotify | YouTube | Google

Filter Articles By Category

View All Connector Articles


Select Contributor to view their article(s)

View All Passive Articles


Select Contributor to view their article(s)

View All Supply Chain Articles


Select Contributor to view their article(s)

Stay Updated

Subscribe to our newsletters, promotions, and product updates.

Material Costs

Search MarketEYE