Electronic component orders show uptick in August.

Electronic component orders rose slightly in August compared to previous months, according to the monthly index issued by the Electronic Components, Assemblies & Materials Association (ECA, Arlington, VA, www.ec-central.org). Still, the 12-month moving average of the index remains flat, and industry watchers are cautious about the prospects of a recovery.

"For the last three years, pundits have anticipated a Q4 recovery and it hasn't happened," said Bob Willis, ECA president. "No one is willing to predict a recovery this time, but up is better than the months of flatness and slight downturns we've been experiencing."

Willis said that the industry was buoyed by the Commerce Department,s recent report that the gross domestic product in the U.S. grew by 3.1% in the second quarter, more than double the 1.4% growth for both the first quarter of 2003 and the last quarter of 2002. The Commerce Department said spending on capital equipment and software rose by 8.2% in the second quarter, higher than the expected 7.5% growth.

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 reportedly represent 80% of the U.S. electronics industry.

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