“In June, the European semiconductor industry leading indicator gained some ground after having slowed three months in a row,” commented Dr. Evangelos Simos, chief economist of e-forecasting.com.
According to the research firm, the semiconductor indicator’s six month growth rate went recorded 1.9% in June 2011, after reaching 1.8% in May.
This indicator is a “forward-looking composite index that forecasts six months ahead, on average, business activity in the region for sales for semiconductors”.
“Consecutive positive values in the six-month growth rate predict an end to an economic recession and the beginning of an upcoming expansion,” said the firm.
Four of the seven components that make up the leading indicator for semiconductor sales in the European market improved in June. These included: non-EU demand prospects in top-10 partner-countries, US monetary conditions, change in profit margins and orders to inventories ratio, US electronics.
The components that had a negative contribution included the productivity barometers for US and European manufacturing.