Component distributors in the UK and Ireland are seeing improving demand and sales activity, says Adam Fletcher chairman of industry body Afdec.
“We are operating in very unusual market conditions in what continues to be a fragile overall economic environment, exacerbated by uncertainty about the forthcoming general election in the UK,” said Fletcher.
There was also evidence of lengthening lead times and “some sporadic product shortages”.
“The sales by month three month moving average for all components is now trending up, suggesting that we’ll see a small billings growth in February,” said Fletcher.
Total monthly billings in January increased by 17.7%, when compared to previous month and by 9.1% when compared to the same period last year.
“Despite the high levels of optimism in the UK electronic components supply network, I suspect that global electronics market growth may not prove to be sustainable into Q2’10 and as a result we are also likely to see a small correction in the UK,” said Fletcher.
See also: Orders and confidence improving for component distributors
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