IPC says 3Q sales slowdown likely for electronic interconnect orders

As noted by John Keller, chief editor of InterconnectionWorld sister site Military and Aerospace Electronics, IPC's latest market analysis concludes that combined orders for rigid printed circuit boards and flexible circuits in North America decreased for the fourth consecutive month in April, compared with the same period one year ago - while combined orders of rigid printed circuit boards and flexible circuits in the United States and Canada continued their upward trend.

During the first four months of 2011, combined orders of rigid printed circuit boards and flexible circuits are down 6.7 percent, and shipments of these products are up 5.9 percent over the same period in 2010, IPC analysts say. Further, combined orders of rigid printed circuit boards and flexible circuits in North America dropped by 5.6 percent in April, compared to orders the same month in 2010, while shipments increased 3 percent in April over the same month last year.

The slowdown in sales growth in North American electronic interconnect products is likely to continue through at least this summer, added Denny McGuirk, IPC's president and CEO.

December 2010 was the last time North American orders of rigid printed circuit boards and flexible circuits posted a year-over increase, points out MAE's Keller. Combined shipments of these products, however, have posted steady monthly year-over increases since December 2010 and beyond.

"Growth in North American PCB sales continues to follow normal seasonal patterns and seems to have returned to normal, and the book-to-bill ratio is holding steady at just under parity," concludes IPC's McGuirk. "This suggests the slowdown in sales growth is likely to continue into the third quarter of this year."