ATLANTA – Industry sentiment for electronics component market sales sustained strong growth in April, according to ECIA’s monthly survey, but modest slowing is ahead. The average market growth assessment for April expanded to 60% of survey respondents, compared to 1% viewing the market declining in April.

The survey, which assesses month-to-month sales growth, ranged between 146 and 159 in component and end-market measures from March to April.

Looking toward May, sentiment is softening compared to April. Although, any score above 100 indicates growth expectations; hence, this softening is an indication of a decrease in the rate of market acceleration, not an indication of weakening growth.

Given the continued strong pressure on growth, it should be expected that demands on supply will continue to result in increased lead times and upward price pressure.

Assessments of lead times continue to point toward extending lead times. This effect is amplified by the bullwhip effect as increased demand in the end market is amplified up the supply chain as companies work to restock inventory and prepare for future growth. Microcontrollers, analog ICs and discrete semiconductor components continue to exhibit the strongest lead time pressure. However, lead time pressure in electro-mechanical components and connectors jumped significantly in March and April.

“Looking forward, the data show May softening modestly compared to April,” said ECIA Chief Analyst Dale Ford. “However, it should be remembered any score above 100 indicates growth expectations. Hence this softening is an indication of a decrease in the rate of market acceleration and not an indication of weakening growth. Given the continued strong pressure on growth, it should be expected demands on supply will continue to result in increased lead times and upward price pressure.”

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