A monthly benchmark that gauges purchasing professionals' views on procurement activity in the electronic components marketplace. A reading below 100 indicates pessimism; a reading above 100 indicates optimism.
After slowing in July, the Global Purchasing Index rises more than 2 points in August, as buyers of electronic components point to better business conditions.
Global Purchasing's monthly business confidence index rose 2.3% in August to 116.9, indicating continued optimism among purchasing managers and other buyers of electronic components. The August level approaches June's record high of 117.5 and represents an increase over July's slight dip to 115.5. The GPI has remained above the 100-point threshold indicating optimism since its launch in January and has maintained a steady surgeA transient variation in the current and/or potential at a point in the circuit. throughout the summer.
Overall, buyers reported a drop in new orders from customers, steady lead times, and an increase in their component inventories. Buyers also reported an increase in their purchasing activity, and said they generally are paying higher prices for components.
The GPI's new orders index fell 9% in August to 2.03, matching a record low established in June. Component inventories rose 2.3% to 2.21, the highest level since January. At the same time, buyers said their purchasing activity increased during the month (6% compared to July), and that the prices they pay for those components are higher compared to July. The prices index rose 7.5% over July to 2.27.
