Chart Beat: Global electronics manufacturing subdued in December, shows PMI
The worldwide electronics sector's growth continued to wane, hampered by lacklustre demand and rising inflation. As per the S&P Global Electronics Purchasing Managers’ Index (PMI), which is seasonally adjusted, there was a drop to 47 in December, down from November's 48.
This fall underscores a more pronounced and ongoing decline in the operational conditions within the global electronics manufacturing landscape as 2023 drew to a close. PMI above 50 indicates expansion, and a reading below 50 contraction.
This latest PMI figure was accompanied by the most marked reductions in new orders and production seen in the past four and five months, respectively, as noted in the survey report. Factors such as a sluggish global economy, persistent inflation, and delayed projects were mentioned as reasons for the weakened demand.
Additionally, the survey highlighted that average input costs for global electronics manufacturers rose significantly in December. The firms attributed these increases to heightened raw material costs, global exchange rate variations, and widespread inflationary pressures.
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