Sourcetoday 495 Gpi June 1

GPI Rises 6% in June

July 7, 2015
Electronics buyers report increased optimism in June, as new orders, purchasing activity remain stable.

Economic optimism among electronic components buyers rose nearly 6% in June, as the Global Purchasing Index (GPI) measured 116, its highest level since March.

The GPI surveys a panel of industry buyers each month, with a reading above 100 indicating economic optimism and a reading below 100 indicating pessimism. This is the second monthly increase since buyers reported slowing optimism in April, when the GPI fell 12 percentage points to a reading of 109, its lowest reading of the year.

Buyers reported mostly stable conditions for orders, purchasing activity, inventories, and pricing, but reported longer lead times for many of the components they buy.

“Lead times are moving out a little longer,” reported one GPI panel member.

“Longer lead times and dwindling supply in traditional franchised distributors is leading to spot shortages,” said another panel member.

Inventories Inch Up

The GPI inventories index saw the greatest change in June, rising 7% compared to April, when buyers reported having less inventory on hand compared to the previous month. The inventories index has dipped below 2, indicating a decrease in the amount of inventory buyers have on-hand, only two other times since the GPI launched in January 2014—December 2014 and February 2015.

The other four GPI indexes—new orders, purchasing activity, pricing, and lead times—remained fairly stable during the month. Buyers reported steady activity in customer orders and in their own purchasing activity, but said pricing and lead times had inched up slightly. The prices index rose 4% while the lead times index rose 1.4%.  

Global Purchasing compiles the GPI data monthly from a survey of more than 100 panel members who buy a wide range of electronic components. Prequalified for their industry experience, panel members are purchasing executives, managers, or buyers at original equipment manufacturing or contract manufacturing firms around the world.

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