Growth accelerated in the first four months of 2010 as SE Asia led the electronics recovery and all regions followed. The global purchasing managers’ index reached a high in April, and electronic equipment growth is now positive for all geographic regions.

Growth accelerated in the first four months of 2010 as SE Asia led the electronics recovery and all regions followed.

Globally the current electronics industry business cycle is approaching its peak growth rate. Certainly our industry is far from “recovered,” but relative to 1Q’09’s recession-driven chasm, 2010 growth is now near its high point.

Business conditions continue to improve. Industrial production growth is now again positive for the majority of the world’s major economies.

Forward-looking economic data are looking better and better. While we are not “out of the woods” yet, most global indicators support a broad 2010 recovery.

2009 will certainly be remembered as a very difficult year for the global electronics industry. Fortunately even the most conservative most prognosticators now see at least a subdued "recovery" in 2010.

Based upon VERY preliminary data, world electronic equipment sales grew sequentially for the third quarter but were still down 8% in 3Q’09 vs. 3Q’08.

Based upon VERY preliminary data, world electronic equipment sales grew sequentially for the third quarter, but were still down 8% in 3Q'09 vs. 3Q'08.

The first half of 2009 was difficult-to say the least!

The second half of 2009 began on a much more optimistic note.

Since gloomy news has been the norm for the last year, we have decided to "focus on the positive" for this month's column.

1Q'09 (not surprisingly) was a difficult quarter for electronic equipment manufacturers. OEM revenues dropped 12% compared to the first quarter of 2008.

Based upon data available in mid-April, global industrial production growth still looked quite bleak, and electronic equipment shipments continued to decline (except for Taiwan/China) at an accelerating rate.

The world is clearly in recession. Henderson Ventures’ most recent global economic forecast predicts negative GDP growth in all major regions except China for 2009.

Global electronic business conditions began strong in 2008 but then ‘crashed and burned’ late in the year. 

We are now in the seasonal “slow period” – the trough between the Aug-Nov “holiday ramp-up” and the late spring “recovery.”