ARLINGTON, VA -- Electronic component orders dipped in July after reaching a two-year high in June, raising questions over what the slowing means.

“We might be seeing manufacturers retrench after a huge demand caused by replenishment of low inventory levels and perceived shortages of electronic components,” said Bob Willis, president of the Electronic Components Association, which compiles the data.

Still, the drop was sequential only; the 12-month average continued to rise.

“There are also tangible signs that the recovery is lagging compared to last year at this time, when it was just building up steam," Willis said. "Another possibility is that manufacturers are taking a bit of a timeout to get a better picture of future demand – that has happened a couple of times over the past year.”

ECA’s monthly report consolidates order information collected in confidence from leading electronics component manufacturers.