Durham, NH – Economic research firm e-forecasting.com today announced that the European Semiconductor Sales leading indicator went up 1.3 percent in January to a reading of 183.3, after an increase of 1.5 percent in December. The index was set to average 100 in 2000.

 

The indicator, comparable to the company’s other global regional semiconductor industry indicators for North America, Asia Pacific and Japan, is a forward-looking composite index that forecasts six months ahead, on average, business activity in the region for sales for semiconductors.

 

“The European semiconductor industry leading indicator continues to grow, although the pace continues to slow, as noted last month. This is the 13th month that the indicator has experienced growth, and the six-month growth rate continues to steadily remain well above the long term growth rate, showing the industry will continue to be in expansion, although the growth will start to slow later this year," commented Maria Simos, CEO of e-forecasting.com.

 

The semiconductor leading indicator’s six month growth rate went up 23.4 percent in January 2010, after going up 23.8 percent in December. Consecutive positive values in the six-month growth rate predict an end to an economic recession and the beginning of an upcoming expansion.

 

Six of the seven components that make up the leading indicator for semiconductor sales in the European market improved in January: Productivity Barometer, US Manufacturing; Productivity Barometer, European Manufacturing; Non-EU Demand Prospects, Top-10 partner-countries; US Monetary Conditions, Yield Spread; Orders to Inventories Ratio, US Electronics and European Short-term Interest Rates. The only component that had a negative contribution to the leading indicator for semiconductor sales in the European market was: Change in Profit Margins, US Semiconductors.