Component Order Index Remains Stable; Market Indicators Point to Conservative Growth Through Summer Followed by Increased Demand for New Products by End of Q3.

Business Editors/High Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--June 6, 2002

Electronic component orders remained stable midway through the second quarter according to the monthly index from the Electronic Components, Assemblies & Materials Association (ECA).

The four- to five-week index and the 12-month moving average converged in May, indicating industry stability.

"The index shows that we might be gaining some stability after the mercurial growth in 2000 and the low points of Q2 2001," says Bob Willis, ECA president. "It's still early to judge anything from the small downturn in the four- to five-week index."

Other industry indicators such as the increase in manufacturing productivity and the semiconductor industry's positive book-to-bill ratio point to a conservative recovery for electronic components. "Most market information suggests slow growth through the end of the summer," says Willis. "As the shelf life of many products in inventory expires and new products and designs come online, demand will increase in the late third quarter through the end of the year."

The Electronic Components, Assemblies & Materials Association (ECA) represents manufacturers and producers of passive and active electronic components, component arrays and assemblies, and materials and support services. It is a sector of the Electronic Industries Alliance (EIA), comprising more than 2,100 members that represent 80 percent of the $550 billion U.S. electronics industry. ECA members benefit from a dynamic link into a network of programs and activities in areas such as business and technical information, market research trends and analysis, access to industry and government leaders, technical and education training, and others. For more information, visit www.ec-central.org.