11/11/2015 //
October PMI (Purchasing Managers Indices) were released by Markit Economics and the Institute of Supply Management
Source: | www.markiteconomics.com |
www.ism.ws |
With more companies now having reported their 3Q’15 financial results we have tightened our estimates of third quarter performance.
Note that these numbers are still preliminary as not all companies have yet reported their third quarter financials. Also some closed their quarter in October versus September.
Source: Company financial reports with Custer Consulting Group analysis.
The U.S. Department just released its September “Factory Orders” report. Here are some key findings.
1-year run up (Chart 17).
Source: www.census.gov/manufacturing/m3/
September sales up slightly compared to last month, down compared to last year
The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors reached $85.2 billion during the third quarter of 2015. This total marks an increase of 1.5% compared to the previous quarter, but is 2.8% lower than the third quarter of last year. Global sales for the month of September 2015 were $28.4 billion, 1.9% more than last month’s sales, but 2.8% less than sales from September 2014. All monthly sales numbers represent a three-month moving average.
“Global semiconductor sales showed signs of resilience in September, increasing compared to the previous month across all regional markets for the first time in more than a year,” said John Neuffer, president and CEO, Semiconductor Industry Association. “However, softening demand and currency devaluation caused year-to-year sales to dip for the third straight month.”
Regionally, sales were up compared to last month in the Americas (4.0%), China (2.6%), Europe (2.2%), Japan (0.5%), and Asia Pacific/All Other (0.1%). Year-to-year sales increased in China (5.0%), but decreased in Asia Pacific/All Other (-3.5%), the Americas (-3.9%), Europe
(-10.6%), and Japan (-11.4%).
“One thing proven to spur semiconductor sales globally is maintaining free and open markets,” Neuffer continued. “In June, SIA successfully encouraged policymakers to approve legislation to facilitate free trade agreements. In July, a major deal was struck in Geneva at the World Trade Organization to expand the Information Technology Agreement to eliminate tariffs on next-generation semiconductors called MCOs and a wide range of tech products. And in October, negotiators from around the Asia-Pacific region reached an agreement on a massive trade agreement called the Trans-Pacific Partnership (TPP). The TPP would spur growth and promote innovation in our industry and throughout the U.S. economy, and Congress should approve it.”
Source: www.sia-online.org
Custer comments:
Custer will present his “Business Outlook for the Global Electronics Industry” at the Productronica tradeshow in Munich. Speaking times and locations are:
SMT Speakers Corner (Hall A1 stand 411)
Tuesday, November 10, 3:30 - 4:30 p.m.
Thursday, November 12, 3:30 - 4:30 p.m.
Innovation Forum (Hall B3 stand 451)
Wednesday, November 11, 3:30 - 4:30 p.m.
PCB and EMS Marketplace (Hall B1 stand 360)
Friday, November 13, 1:00 - 1:45 p.m.
All attendees will receive his complete set of charts.
During the show you can contact Walt at the EIPC and co-exhibitors stand B1-529 or by mobile phone +1 7074942495.
See you in Munich!
Walt Custer is an industry analyst focused on the global electronics industry. Prior to forming Custer Consulting Group he was Vice President of Marketing and Sales for Morton Electronic Materials, a global supplier of specialty chemicals and process equipment for the PCB industry.
Custer has been a member of the IPC trade organization since 1975 where he received both the President's and the Raymond E. Pritchard Hall of Fame Awards. He is currently a member of the IPC Executive Market & Technology Steering Committee. Custer is also a Director of the EIPC European PCB trade organization.
He authors regular “Market Outlook” columns for Global SMT & Packaging magazine, the Journal of the HKPCA and the TTI MarketEYE website.