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European Semiconductor indicators fell in February
Economic research firm e-forecasting.com today announced that the European Semiconductor Sales leading indicator edged down by 0.1 percent in February to a reading of 130.1, after falling 0.2 percent in January. The index was set to average 100 in 2000.
The indicator, comparable to the company’s other global regional semiconductor industry indicators for North America, Asia Pacific and Japan, is a forward-looking composite index that forecasts six months ahead, on average, business activity in the region for sales for semiconductors.
“The European semiconductor industry leading indicator’s six month growth rate has gone down the last eight months in a row. Although still negative, the growth rate is improving slightly. If this trend continues, the industry may start to pull away from the recession,” commented Maria Simos, CEO of e-forecasting.com.
The semiconductor leading indicator’s six month growth rate went down 4.4 percent in February 2009, after going down 4.7 percent in January. Consecutive negative values in the six-month growth rate predict an end to an economic expansion and the beginning of an upcoming recession.
Three of the seven components that make up the leading indicator for semiconductor sales in the European market improved in February: Productivity Barometer, US Manufacturing; US Monetary Conditions, Yield Spread and European Short-term Interest Rates. The four components that had a negative contribution to the leading indicator for semiconductor sales in the European market were: Productivity Barometer, European Manufacturing; Non-EU Demand Prospects, Top-10 partner-countries; Change in Profit Margins, US Semiconductors and Orders to Inventories Ratio, US Electronics.
The indicator, comparable to the company’s other global regional semiconductor industry indicators for North America, Asia Pacific and Japan, is a forward-looking composite index that forecasts six months ahead, on average, business activity in the region for sales for semiconductors.
“The European semiconductor industry leading indicator’s six month growth rate has gone down the last eight months in a row. Although still negative, the growth rate is improving slightly. If this trend continues, the industry may start to pull away from the recession,” commented Maria Simos, CEO of e-forecasting.com.
The semiconductor leading indicator’s six month growth rate went down 4.4 percent in February 2009, after going down 4.7 percent in January. Consecutive negative values in the six-month growth rate predict an end to an economic expansion and the beginning of an upcoming recession.
Three of the seven components that make up the leading indicator for semiconductor sales in the European market improved in February: Productivity Barometer, US Manufacturing; US Monetary Conditions, Yield Spread and European Short-term Interest Rates. The four components that had a negative contribution to the leading indicator for semiconductor sales in the European market were: Productivity Barometer, European Manufacturing; Non-EU Demand Prospects, Top-10 partner-countries; Change in Profit Margins, US Semiconductors and Orders to Inventories Ratio, US Electronics.
