BANNOCKBURN, IL — North American printed circuit board manufacturers reported shipments fell 2.6% year-over-year in July on normal seasonality.

July orders fell 8.4% from last year, IPC reported. Year to date, shipments are down 5.2% and bookings up 0.3% through July. Sequentially, shipments fell 16% and bookings decreased 21.4%.

The book-to-bill ratio for the fifth straight month, falling 10 basis points to 1.01. It is the lowest mark for the ratio since January 2012.

Book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period. A ratio of more than 1.0 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next two to three months.

Rigid board shipments, which make up 90% of the overall market, fell 4.2% from July 2011 and 16.6% sequentially. Bookings dropped 5.7% year-over-year and 18.7% from June. Year to date, rigid shipments are down 5.3% and bookings up 1.1%. The rigid PCB book-to-bill ratio industry was 1.0.

Flexible circuit shipments rose 15.4% and bookings fell 35% year-over-year. Sequentially, flex circuits were down 9.% and orders plunged 46.7%. Year to date, flexible circuit shipments are down 4.2% and bookings are off 7.7%. The flex circuit book-to-bill ratio dipped to 1.03.

“The sharp declines in North American PCB sales and orders in July over the previous month reflect normal seasonal patterns,” said Sharon Starr, IPC director of market research. “Strong flexible circuit sales in July cushioned the fall. This strong sales performance was not surprising given the high book-to-bill ratios for flex seen in the first half of the year.”

In July, some 83% of total PCB shipments reported by survey participants were domestically produced, meaning 17% were build offshore and imported for resale. The flexible circuit sales typically include value-added services such as assembly, and manufacturers surveyed indicated bare circuits accounted for about 44% of their shipment value reported for July.