The Institute for Supply Management’s PMI declined to 53 percent last month from 56.1 percent in May. New orders dropped nearly 6 points to 49.2, the lowest reading since May 2020 when the economy was recovering from the impact of Covid-19. Any reading above 50 indicates expansion.
Overall, June was a mixed bag for the electronics industry, reported EPS News. Computers and electronics were one of the ISM’s top 5 growth sectors in June. “Backlog is high, but incoming orders [are] slowing this month,” a tech executive told the ISM.
At the same time, the ECIA’s Electronic Component Sales Trend Survey (ECST) index dropped below the benchmark of 100 in June, indicating negative growth. The index for all major component categories measured below 100 driving an overall average of 97.5 for the month. Similarly, the end-market sentiment registered at 93.2 for June, in line with forecast expectations in May.
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