Global electronic equipment production growth continues-but definitely at a slower pace (Chart 1). Taiwan/China dipped to +13.2 percent three-month growth this July compared to+36.7 percent last October; the U.S. (+4.7 percent) and Europe (+7.6 percent) are in single digits; and Japan (-6.5 percent) is under water. Most prognosti-cators do not see a significant rebound until late 2009 or 2010. In the U.S., total electronic equipment orders have been relatively flat since early 2006 (Chart 2); however, the product mix is changing. Medical, measurement, and control equipment have remained strong and defense electronics has been a significant contributor. However, this July, domestic military electronic equipment orders plunged (Chart 3), thanks to very weak defense communication equipment bookings. Because the military sector is traditionally quite volatile, a modest August rebound is not unlikely.
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