ATLANTA – Electronic component market sales growth expectations continue to wane, according to the July ECIA survey.

Beginning in the summer of 2020, the industry sentiment for the electronics component market sales experienced a major rebound that peaked in the March/April 2021 timeframe, according to ECIA. The overall component average sentiment index hit 157.7 in March.

However, the following four months have seen a steady loss of month-to-month sales growth momentum. By July, the overall component index had dropped to 128.7 – a decline of 29 index points over four months.

“Concerns related to the economy and the emergence of inflationary pressure could account for the shifting sentiment in the index,” said ECIA chief analyst Dale Ford. “In addition, supply chain challenges likely add to the concerns, as supply constraints in one category have a ripple effect on demand in other areas. Within individual market segments, computers and telecom network equipment have seen the biggest decline in positive sentiment. On the other hand, the avionics/military/space segment is seeing improved expectations. Perhaps there is a psychological boost from the first successful space tourist flights. There is certainly cause for optimism looking forward, as the continued introduction and market adoption of exciting new technologies should motivate both corporate and consumer demand for next-generation products.”