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TEMPE, AZ – New orders for manufactured products jumped in July, carrying production along for the ride, according to the latest data from the Institute for Supply Management.

The PMI index in July rose 1.1 points to 48.9%, ISM reported today. New Orders were up 6.1 points to 55.3%. Production reached 57.9%, up 5.4 points. The trends suggest the full recovery will be complete by the third quarter, an ISM spokesman said.

During the month, inventories rose 2.7 points to 33.5%, as manufacturers began to backfill depleted stocks. Customer Inventories dipped 1 point to 42.5%, and Order Backlogs increased 2.5 points to 50%.

A reading above 50% indicates the manufacturing economy is generally expanding.

Economic activity in the manufacturing sector failed to grow in July for the 18th consecutive month, while the overall economy grew for the third consecutive month, according to ISM.

"The decline in manufacturing was slower in July when compared to June, as the more leading components of the PMI – the New Orders and Production Indexes – rose significantly above 50%, thus setting an expectation for future growth in the sector,” said ISM spokesperson Norbert J. Ore. The Employment and Inventories indexes are still contracting, but the rate is slowing and they are moving in the right direction. It is also worth noting that the New Export Orders index shows growth following nine consecutive months of decline, suggesting that the global economy is recovering. Overall, it would be difficult to convince many manufacturers that we are on the brink of recovery, but the data suggest that we will see growth in the third quarter if the trends continue.”

SAN JOSE – Worldwide sales of semiconductors for the second quarter were $51.7 billion, up 17% sequentially, the Semiconductor Industry Association reported today.

SHENZHEN -- Nam Tai Electronics, the world's 17th largest EMS company, reported second-quarter sales fell 30.3% from a year ago to $101.8 million.

HONG KONG -- Surface Mount Technology Holdings reported June quarter revenue of HK$435.3 million ($56.2 million), down 49.8% year-over-year, on slower demand.

SCOTTSDALE, AZ – Aggregate sales of the 20 largest semiconductor companies rose 21% sequentially, says IC Insights, on strong inventory replenishment.

That’s up 37 points from the first-quarter sequential results.

The research firm said inventory cutbacks reversed their trend of the previous two quarters, and seasonal demand for electronics will drive third-quarter semiconductor sales up at least another 8%.

The firm reiterated its forecast of a 17% decline for 2009.

NEWARK, NY -- The comeback at IEC Electronics continued in its third quarter as the EMS company reported net earnings rose 4% on a 45% jump in revenues.

SAN JOSE -- Flextronics' chief executive clarified earlier reports pegging the EMS company's target revenue from notebook PCs at $3.5 billion by fiscal 2011.

NEENAH, WI – Plexus Corp. today announced fiscal third-quarter revenue of $379 million, down nearly 17% year-over-year.

SAN JOSE – Flextronics today reported a fiscal first-quarter loss of $154 million on a 31% year-over-year revenue drop to $5.78 billion.

The results pale against last year, when the company reported $8.35 billion in revenue and $110 million in profits.

BANNOCKBURN, IL – North American PWB shipments in June decreased 29% year-over-year, and orders fell 15.1%, says IPC.

Year to date, combined shipments were down 27.3% and orders were down 28%. Sequentially, combined shipments for the month rose 18.9%, while orders increased 28%, according to the association.

The June book-to-bill ratio climbed to 1.11.

June rigid PWB shipments declined 30.8%, while orders dropped 16.6% compared to 2008. Year to date, rigid shipments were down 29.3% and orders fell 29.6%. Sequentially, rigid shipments grew 18.6% and orders increased 27.9%.

The rigid book-to-bill ratio continued climbing to 1.12.

Flex shipments dropped 3.1% in June, but orders were up 4% year-over-year. Year to date, flex shipments were up 1.5% and orders were down 5%. Sequentially, flex shipments went up 21.3% and orders increased 28.7%.

The flex book-to-bill ratio in June reached 1.02.

A ratio of more than 1.0 suggests current demand is ahead of supply, which is a positive indicator for sales growth over the next two to three months.

Rigid PWBs represent an estimated 91% of the current industry in North America, says IPC. In June, 88% of total shipments were domestically produced, meaning 12% were built offshore and sold in North America. Domestic production accounted for 88% of rigid and 83% of flex circuit shipments.

ANGLETON, TX -- Benchmark Electronics reported June quarter sales of $482 million, down 29.3% from last year on lower demand for computing products.

WASHINGTON -- New orders for durable goods fell 2.5% sequentially in June on slower orders for transportation gear, the US Commerce Department reported.