ATLANTA – The cooling of sales of the electronics component supply chain is expected to moderate in September and through the end of 2021, according to ECIA’s August survey.

Following the peak in the index for overall component average sentiment of 157.7 in March, the index began a decline that saw a significant drop in June. However, the overall component index for July, August and September has seen a lessening decline of month-to-month sales growth momentum. The average decline in the index in these months was only 2.2 points, compared to a drop of 19.2 points in June.

“Concerns and uncertainty related to the economy, emergence of inflationary pressure, and resurgence of Covid-19 with potential shutdowns could account for the continuing shift of sentiment in the index,” said ECIA chief analyst Dale Ford. “In addition, supply chain challenges likely add to the concerns as supply constraints in one category have a ripple effect on demand in other areas. However, there is certainly cause for optimism looking forward as the continued introduction and market adoption of exciting new technologies should motivate both corporate and consumer demand for next-generation products over a growth cycle that appears to have legs to go an extended distance.”

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