AFDEC reports sharp decline in bookings

ECSN chairman, Adam Fletcher, pictured, said: "Our members forecast that the underlying rate of billings growth would begin to slow in the second half of the year and in this time of global economic uncertainty, this is proving to be correct. Uk and Eire customer demand has clearly diminished severely." Nevertheless, Fletcher added that visibility across the entire electronic supply network remains good and the demand signals are quickly being transmitted and received, which is maintaining supply balance. "That said, bookings remain weak dragging the book to bill ratio close to the lowest recorded levels for a decade, at 0.85:1." According to the report, total monthly billings (net sales invoiced less credits) in September 2011 increased by 11% when compared to the previous month, but declined by 7% year on year. Billings changes by product group in September 2011, compared to the same period last year were as follows: 'Semiconductor' declined by 12%; 'Passives' declined by 11%; 'Electro mechs' declined by 3%; 'component assemblies' declined by 12%, while 'other products' increased by 90%. The ECSN notes that the sales by month 'three month moving average' for all electronic components continues to predict a slight decline, a trend Fletcher believes seems likely to be reflected in the full Q4 results. "Despite the plethora of negative sentiment about the macroeconomic environment, I remain confident that ECSN's forecast of a flat fourth quarter for the UK/Eire electronic components market is the most likely outcome and that bookings will recover quickly in Q1 2012."