Slowing Growth of PCB Sales in North America

SDY provides information of PCB and electronic industry news for your reference. Kindly please feel free to contact SDY for any PCB questions or RFQs. North American electronics industry sales growth remained positive but modest in the fourth quarter of 2018. The pace of growth slowed slightly for printed circuit boards (PCBs) and electronics manufacturing services (EMS). For semiconductors, the pace of growth continued its precipitous decline, but is still positive. These year-over-year growth rates reflect three-month rolling averages.

The leading indicators are positive but are also cooling. The U.S. Purchasing Managers’ Index (PMI), which tends to lead industry sales by two to six months, fell sharply in December but remains in positive territory. The PMI has fluctuated in recent months but has not revealed a clear upward or downward trend. It has been positive (above 50) for over two years. The 3/12 rate of change for U.S. new orders for electronic products, which leads industry sales by one to three months, held steady in December and remained positive.

Another leading indicator is IPC’s PCB book-to-bill ratio. It is based on three-month rolling averages of orders and sales, and normally leads industry sales by three to nine months. The book-to-bill ratio has been declining since it peaked in February 2018 but bounced back to 1.05 in December. Ratios above parity (1.00) indicate greater demand than supply, which may be a precursor of sales growth for electronics manufacturers, especially when a run of positive ratios over several months is seen. Ratios below parity indicate the reverse.

However, SDY has stable PCB orders from customers, as the major markets include North America, Europe, Southeast Asia and domestic China. SDY is looking forward to a bright new year 2019 with the good cooperation of exist customers and new growing customers.