NEW YORK -- Electronics manufacturing services companies built inventory in the September quarter, the second straight period component stocks have risen.

As lead times remain higher than normal, inventories have risen throughout the electronics supply chain, says Deutsche Bank.

Inventory levels rose 10% sequentially on average in the September quarter, the analyst said. Moreover, inventory growth outpaced sales projections for the third straight period, in this case by some 3.5% on average.

Component shortages, strong forward sales expectations, program delays, and customer requests to build inventory were cited as primary reasons for the inventory build, DB said.

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