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Report: Electronics Industry Slowdown
Sep 13, 2011
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Growth is slowing in the worldwide electronics industry as it is in most national economies, according to IPC — Association Connecting Electronics Industries.

IPC's report said the ending of stimulus programs, the debt crisis in Europe, and high unemployment in the United States are putting the brakes on economic recovery. IPC said most leading economic indicators show a continuation of this trend through the remainder of 2011.

The summer 2011 edition of IPC's quarterly business report said:
• China continues to lead the major industrial countries, with 9.5% growth in gross domestic product (GDP) in the second quarter of 2011, down slightly from first quarter.
• U.S. economic growth in the second quarter was an annualized 1.3%.
• Euro zone growth was 0.2%.

The numbers in the electronics supply chain look better, but still reflect slowing growth, IPC reported. The second quarter showed solid year-on-year sales growth in the assembly equipment, EMS, and laminate industries, and modest growth in process consumables. Solder and semiconductor sales worldwide in the second quarter were slightly below 2010 figures.

The electronic interconnect industry IPC Index of North American Performance in second quarter 2011 fell to a moderate 4.3, indicating that growth rates have returned to "more normal" levels.

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