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Semi Inventories Rise, Expansion Slows

Two recent reports suggest that the semiconductor industry may be headed for slower growth throughout the last half of 2011.

A recent iSuppli report notes that semiconductor inventory levels have risen, “for the consecutive month in a row in the second quarter, as the industry rebuilds depleted stockpiles and prepares for expected increases in demand.”

A related report from e-Forecasting has concluded that, “the probability of recession in the next six months in the North America Semiconductor industry … registered 87 percent in May. As a result, the odds of business expansion in the next six months for the Semiconductor industry were at the 13 percent mark in May, lower than April’s reading of 18 percent.”

NA Semiconductor Forecast from eForecasting.com

 

The eForecast report lists the following six components that negatively contributed to their composite list of leading indictators: Productivity Advancements, Manufacturing; Weekly Hours, Semiconductor; International Demand Prospects, 35-countries; Change in Profit Margins, Semiconductors; Housing, Diffusion Indicator; NAPM Diffusion Indicator, Manufacturing;

These predictions, combined with a slowing US economy, suggest that the recession ride still has a few more twists and turns. Hang on, everyone.

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