Market Analysis

ECIA’s ECST survey reveals decline for second consecutive month

For the second consecutive month, the ECST survey reported disappointing results, with the overall component index dropping by 13.4 points in June to fall below the 100-point threshold, landing at 98.9 points.

The cumulative decline of over 25 points in May and June wiped out all progress made since January.

“Once again, survey respondents expect a rebound in July with the outlook calling for an improvement of 13 points, recovering to 111.9,” explained ECIA Chief Analyst Dale Ford. “However, after two consecutive months of major forecast misses, confidence in this outlook is shaky at best. Market sentiment for the first half of 2024 has essentially been reset to where it started the year. Hope for 2024 is still found in the expectation coming into 2024 that growth for the year would be driven by second half performance.”

The ECST survey offers detailed visibility into near-term industry expectations through its monthly and quarterly assessments, providing a valuable ‘immediate’ perspective for participants across the electronics components supply chain. Despite the recent decline, the ECIA remains optimistic about the long-term future, anticipating that the ongoing introduction and market adoption of innovative technologies will drive both corporate and consumer demand for next-generation products.

The ECIA Electronic Component Sales Trends (ECST) Report is available to all ECIA members and survey participants. Those in the electronics component supply chain are encouraged to participate to gain valuable insights from the report.

The monthly and quarterly ECST reports present data in detailed tables and figures from multiple perspectives, covering current sales expectations, sales outlook, product cancellations, product decommits, and product lead times. The data is categorised into six major electronic component groups, six semiconductor subcategories, and eight end markets. Additionally, survey results are segmented by aggregated responses from manufacturers, distributors, and manufacturer representatives.