News Article
April positive for European market
European semiconductor industry leading indicator up in April
Economic research firm e-forecasting.com today announced that the European Semiconductor Sales leading indicator went up 0.3 percent in April to a reading of 208, after an increase of 0.3 percent in March. 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 this month showed some continued signs of slowing," commented Dr. Evangelos Simos, Chief Economist of e-forecasting.com.
The semiconductor leading indicator’s six month growth rate went recorded 5.6 percent in April 2011, after reaching 6 percent in March. Consecutive positive values in the six-month growth rate predict an end to an economic recession and the beginning of an upcoming expansion. Three of the seven components that make up the leading indicator for semiconductor sales in the European market improved in April: Non-EU Demand Prospects, Top-10 partner-countries; US Monetary Conditions, Yield Spread and Change in Profit Margins, US Semiconductors. The four components that had a negative contribution to the leading indicator for semiconductor sales in the European market were: Productivity Barometer, US Manufacturing; Productivity Barometer, European Manufacturing; Orders to Inventories Ratio, US Electronics and European Short-term Interest Rates.
