Recovering optimism from Q2 doldrums

According to the ECIA’s Electronic Component Sales Trend July 2023 Survey results, July sales sentiment and August expectations for electronics component sales registered an accelerating, refreshing recovery from the doldrums the industry suffered in Q2. Sentiment for overall electronic component sales improved by 6.7 points to reach 83.0 in July. More encouraging, the outlook for August points to a recovery of overall sentiment all the way up to 94.7, the highest level since one year ago in July 2022. However, caution regarding the outlook is prudent given the dashed expectations compared to actual results in recent surveys.

ECIA chief analyst, Dale Ford, said: “Overall, the July survey delivers encouraging news with solid indications that the market environment is improving in the second half of 2023.

“In the analysis last month, it was hoped that sales equilibrium could be achieved in Q3 leading to renewed growth in Q4 2023 or Q1 2024. The July results strengthen this expectation and increases the chances of a return to sales growth being pulled in to Q4 2023.”