Growth and decline flattening out says IDEA

The International Distribution of Electronics Association (IDEA) has released its European Electronic Components DTAM (Distributor Total Available Market) trend figures for Q2/08. According to IDEA vp, Adam Fletcher, both the rate of growth in Q1/08 and decline in Q2/08 are flattening out, suggesting a period of stability in the European electronic components industry. “This is a welcome surprise given the decline in exchange rates between the US dollar and the Euro over the last twelve months,” he explained. “Perhaps the European electronic components markets are close to finding a new ‘natural level’ within the global market.” The release of IDEA’s second quarter figures reveal that European electronic components DTAM is continuing to follow the historic annual trend of a strong Q1 followed by three declining quarters. The Book-to-Bill ratio was close to unity in Q2 confirming that Q3 is likely to follow the historical trend. “As is usual, semiconductors are leading the current European bookings and billings trend,” he added “with a similar pattern being followed by passives, electro-mechs and other products.” Total European Distribution Bookings (Net Sales Orders Entered) in Q2/08 declined by (6.2%) when compared to Q1/08 and declined by (2.5%) when compared to the same period last year. Sector specific Bookings changes in Q2/08 compared to the previous quarter were: semiconductors declined by (7.6%), passives by (3.7%), whilst electro-mechs and other components declined by (1.1%). Total European Distribution Billings (Net Sales Invoiced less Credits) in Q2/08 declined by (3.1%), when compared to Q1/08 and declined by (3.3%) when compared to the same period last year. Sector specific billings changes in Q2/08 compared to the previous quarter were: semiconductors declined by (4%); passives declined by (2.6%); electro-mechs and other components declined by (0.6%).