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Demand high but supply chain challenges remain, IPC reports

IPC releases September outlook
Demand high but supply chain challenges remain, IPC reports

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“The electronics supply chain continues to perform well despite challenging circumstances,” DuBravac wrote. “There is reason to be optimistic.”

Global trade association for the electronics industry IPC has released its economic outlook for the month of September. The association says global demand remains strong, but the economic environment is softening.

“We are starting to see some early signs that demand is slowing. While there are still many reasons to remain optimistic, growth moving forward will be more difficult to achieve,” Shawn DuBravac, IPC chief economist said.

The association has raised its growth outlook for Europe and lowered it for the US and China, citing weakening conditions in the US as a result of the ongoing pandemic.

The association also adds that supply chain disruptions are limiting growth, lead times have lengthened and prices throughout the supply chain are up.

“The electronics supply chain continues to perform well despite challenging circumstances,” DuBravac wrote. “Manufacturers are reporting rising orders and improving capacity utilization. There is reason to be optimistic. However, dislocations throughout the supply chain continue to hamper the current environment. Backlogs are rising, and firms expect them to continue rising in the months ahead.”

Read the full report here

ipc.org

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