A more accurate view of the industry comes from bookings – what industry wants in the future, rather than what it has already consumed. ECSN’s book to bill figures dropped by 16% from May to June, which shows that companies are not replenishing stock. This suggests one of two things: either they over ordered in the past and are using excess inventory or their orders are declining.
One thing that has been a constant over the years when it comes to the UK distribution sector is that expectations have never been high. Look back through the pages of New Electronics and a recurrent phrase is ‘modest growth’, with the occasional ‘low growth at best’. So a jump of 13% year to year is atypical.
Adam Fletcher, ECSN chairman, said the boost in sales over 2015 was ‘good news’, but pointed out the UK ‘remains at odds the with global market’. “We remain in a period of some uncertainty,” he added.
Whether that uncertainty is Brexit related or symptomatic of a cooling economy remains to be seen.
