ARLINGTON, VA – The monthly electronic component order index compiled by the Electronic Components, Assemblies & Materials Association (ECA) took a slight dip in March after three months of steady upward movement.  The 12-month average index that tracks market movement over the past year continued to rise slightly.
 
The slight downturn in the four-to-five-week floating index does not indicate any long-term pattern, according to Bob Willis, ECA president. "It appears that the market is just pausing for breath," says Willis. "All the vital signs remain good."
 
Studies by JPMorgan show that component suppliers and distributors have accelerated inventory turns and lowered operating expenses, while prices have remained relatively stable. JPMorgan predicts that major OEM orders will rise 11% this year versus 9% in 2005.