Seasonal Upturn in a Difficult Economy

摘要

Electronic equipment production growth slowed significantly this winter and spring in Southeast Asia and Japan (Chart 1). Consumer-focused goods (often made in Asia) have felt the brunt of the current economic downturn. Concurrently a stronger Chinese yuan, higher wages and shipping expenses, and generally rising internal costs have impacted Chinas low-cost manufacturing position. Rethinking global outsourcing strategies is now commonplace in the Americas and Europe. U.S. end-market demand continues to show modest growth (Chart 2). Semiconductor shipments to North America have played catch up with domestic electronic equipment this year (Chart 3) and, unfortunately, will probably overshoot the mark before driving the next downward correction. Over-ordering chips and then correcting the excess remains an ongoing problem.