After slipping below the 100-point mark indicating business optimism in December, the Global Purchasing Index surged 19% to a reading of 118 in January as buyers of electronic components reported better business conditions at the start of 2015.
Though GPI panel members reported a 3% drop in new orders from customers during the month, they said they expect orders to pick up later in the first quarter and in the second quarter of the year. They also reported an increase in their purchasing activity along with an increase in their electronic component inventories. The prices index increased during the month as well, and buyers reported longer lead times for many of the components they purchase.
Overall, the outlook is positive.
“Bookings are way up for January, with scheduled orders also being booked for Q1 and Q2,” one panel member said. “Optimism is the highest it has been in several years. We are hiring new personnel and looking forward to 2015.”
