Market Watch
EDITED BY CHELSEY DRYSDALE
IPC Survey: Global Electronics Industry Still Growing – Barely
BANNOCKBURN, IL — The global electronics industry continues to thrive in a positive business environment, according to third quarter results from IPC’s Pulse of the Electronics Industry global data service.

The survey still predicts continued growth over the next year, but results are somewhat less optimistic than in earlier 2019 quarters, and there are some sharp contrasts between regions. The composite score on the current state fell to its lowest level since the Pulse survey began in mid-2017.

The companies’ average outlook for the next six months remains solidly positive on a global level but has weakened since the beginning of 2019. Europe is the only region reporting a net negative composite score on the industry’s six-month outlook. In the six-month outlook for Asia, only exports were rated as a negative driver this quarter, due to the trade war between China and the US.

The 12-month business outlook as of the third quarter remains strong globally, with 87% of responding companies indicating a positive outlook. Only Europe reported a mixed outlook, reflecting the current uncertainty about the impact of Brexit and the region’s slowing economic growth.

See A/V Fall
Trends in the U.S. electronics equipment market (shipments only).
 
%CHANGE
 
June
July
Aug.
YTD%
Computers and electronics products
-1.2
-0.3
-0.4
4.4
Computers
-6.7
-1.2
-2.9
-20.8
Storage devices
-4.2
2.7
1.4
20.2
Other peripheral equipment
0.5
-5.5
3.4
5.2
Nondefense communications equipment
1.0
0.6
0.2
11.5
Defense communications equipment
12.1
-14.9
-2.6
2.1
A/V equipment
0.0
0.6
-12.5
35.1
Components1
1.6
-1.0
1.0
3.5
Nondefense search & navigation equipment
-1.6
0.4
0.3
3.4
Defense search & navigation equipment
-1.3
1.1
-0.4
2.8
Medical, measurement and control
-3.2
0.5
-1.0
0.9
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, Oct. 3, 2019
Hot Takes
  • Global shipments of gaming desktops, notebooks, and monitors reached 10.4 million units in the second quarter, up 16.5% year-over-year. (IDC)
  • Smartphone sales worldwide will decline 3.2% in 2019, the worst decline the category has seen. (Gartner)
  • The worldwide market for HDI PCBs topped $10 billion in production value in 2018, with Taiwan accounting for about 40% of the total value. (TPCA)
  • India’s production of electronics goods has doubled in the past four years to $65.5 billion in 2019. (India Ministry of Electronics and Information)
  • PC monitor shipments declined 2.2% year-over-year in the second quarter to just over 30 million units. (IDC)
  • German electronics companies reported July sales rose 1.8% over the previous year to 16 billion euros. (ZVEI)
  • Taiwan’s electronic components exports reached $10.48 billion in August, up 10.3% sequentially and 7.5% from last year, with ICs making up 89% of the segment’s value. (TPCA)
  • The server industry is having a weak 2019 due to high inventory levels, but global shipments are expected to grow around 5% in 2020. (DigiTimes Research)
Metals Index
LME Tin
LME Lead
LME Copper
COMEX Silver
US Manufacturing Indices
 
MAY
JUNE
JULY
AUG.
SEPT.
PMI
52.1
51.7
51.2
49.1
47.8
New orders
52.7
50.0
50.8
47.2
47.3
Production
51.3
54.1
50.8
49.5
47.3
Inventories
50.9
49.1
49.5
49.9
46.9
Customer inventories
43.7
44.6
45.7
44.9
45.5
Backlogs
47.2
47.2
43.1
46.3
45.1
Sources: Institute for Supply Management, Oct. 1, 2019
Key Components
 
APR.
MAY
JUNE
JULY
AUG.
Semiconductor equipment billings1
-28.5%
-23.6%
-18.4%
-14.6%r
-10.5%p
Semiconductors2
-13.7%
-14.8%
-16.5%
-15.5%r
-15.9%p
PCBs3 (North America)
1.02
0.99
1.00
1.00
1.02
Computers/electronic products4
5.35
5.39
5.46
5.46r
5.48p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised
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