JULY 27--The Electronic Components, Assemblies & Materials Association (ECA; Arlington, VA; www.ec-central.org/) has reported that orders for electronic components remained flat for the month of June and are expected to remain flat through the summer. According to the ECA's latest index, inventories in the supply channel are continuing to decrease and could soon reach levels that reflect the current demand. However, end-product manufacturers have not been able to reduce their inventories. The ECA said greater consumer confidence and the federal tax rebates might help spur demand in the second half of this year, which could result in an upturn in the electronics industry late this year.
"The orders index remained down, but steady compared to last year," said Bob Willis, ECA president. "Orders are expected to remain flat through the end of the summer."
ECA's monthly index is based on weekly order reports from about 30 electronic-component companies.
