ECIA’s Electronic Component Sales Trend Survey (ECST) exceeded expectations in April. However, survey participants are clearly cautious in their forecasts for May.
Overall sales sentiment for April beat expectations by over 13 points as the index measurement grew from 113.6 to 119.6. Survey participants still expect growth in May but soften their expectations in the index to 111.5, a drop of 8.1 points and the lowest level since the November 2021 results.
Looking forward, the electronics component market continues to face strong headwinds. Concerns regarding a potential recession are now adding to other major impacts being felt by supply chain participants such as the war on Ukraine by Russia and the upward trend in the inflation measurements, according to Dale Ford, ECIA chief analyst.
These external pressures are likely significant contributors to the more conservative sales expectations looking forward, he added in a statement. Concerns related to the economy continue to grow as inflationary pressures continue to increase and consumer confidence takes a strong hit.
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