Bookings and billings in the European electronic component distribution market both declined in Q2, according to figures from IDEA (International Distribution of Electronics Association).
Billings declined by 13% and bookings by 7% when compared to the previous quarter, so the result was an improvement in the book-to-bill ratio which moved to close to unity.
According to IDEA v-p Adam Fletcher: "We believe that we are now entering a period where the rate of decline falls and the industry stabilises over the second half of the year."
"I suspect that we will now 'bounce along the bottom' of this recession and it is unlikely that we will see a return to stable growth until this time next year," said Fletcher.
IDEA said distributors do see some customer confidence coming back with lead times firming up but remaining stable, with good availability.
"All organisations in the electronic components market need to remain vigilant to changes in both supply and demand, which are likely to happen quickly," commented Fletcher, "along with price increases caused by a combination of the escalating cost of raw materials and fluctuations in global exchange rates".
Total European distribution bookings in Q2 declined by 31% compared to the same period last year. Billings declined by 30% compared to Q2 last year.
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