Global Purchasing Managers Index

Although the semiconductor chip and capital equipment markets performed well in the first half of 2020, many of the electronic equipment end markets struggled globally. World electronic equipment sales declined almost 10% in 2Q’20 vs. 2Q’19.

Plunging stock prices and Coronavirus-driven business shutdowns presently dominate the news. Current economic data, including the recently released February Global Purchasing Manager Index, support earlier negative predictions of an imminent industry decline.

Data through December showed a steady recovery in the global electronic supply chain with SEMI equipment leading the way, but in late January COVID-19 began to make its negative impact felt, snarling supply chains and shutting down factories near Wuhan, China.

We are now in the recovery phase of the current business cycle with SEMI equipment already in a growth mode. However significant economic and geopolitical concerns persist.

The semiconductor industry felt more of a fourth-quarter slowdown than the end markets.  Semiconductor-related products are typically much more volatile than the electronic equipment markets they serve.

Broad Global & U.S. Electronic Supply Chain GrowthThe first quarter of this year was very strong globally, with growth across the entire electronics supply chain. Although Chart 1 is based on preliminary data, every electronics sector expanded –  with many in double digits. The U.S....