IPC Issues February Economic Outlook Report: Economic Data Provides a Mixed View of the Economy

Reading time ( words)

Economic data over the last month is providing a mixed view of the economy per IPC’s February Economic Outlook report.

“On one hand, economic fundamentals continue to slow,” said Shawn DuBravac, IPC chief economist. “However, despite aggregate softness, certain segments continue to do well. For example, the defense and space equipment sector hit another new high in January, aerospace is up significantly from pre-pandemic levels and other sectors key to the electronics industry are holding up well.”

The report also shows that manufacturing sectors in Europe, the U.S., and China are all signaling contraction according to their respective PMI indexes, but in China and Europe at least, things are looking less bad this month. Despite signs of slowing demand, manufacturers continue to hire. “The broader economy added more than 500,000 new jobs, a shocking number in the midst of what many believe is the start of a recession,” added DuBravac.

Additional data in report show:

• U.S. manufacturing sentiment contracted for a third consecutive month, falling from 48.4 to 47.4 in January.
• U.S. industrial production was unchanged in January, but was noticeably weaker than the expected 0.5 percent increase. The manufacturing sector improved 1 percent in January, but prior months were revised downward leaving the headline index lower than previously believed. Industrial production has likely peaked, despite January’s rise.
• The S&P Global Eurozone Manufacturing PMI moved higher in January, rising from 47.8 to 48.8. The index hit a five month high, but remains in contractionary territory.
• EU electronics manufacturing output fell in December after a one month increase in November. Output declined 1.4 percent (month-on-month) and is down 0.9 percent over the last year.
• Despite indications that the global economy continues to slow, economists have marginally raised forecasts for economic growth in the U.S., Europe, and China for 2023.

View full report. For more information on IPC’s industry intelligence program including new reports, visit: www.ipc.org/advocacy/industry-intelligence.

03/07/2023 | Patty Goldman, I-Connect007

Dieter Bergman IPC Fellowship Award winner Curtis Grosskopf, a senior engineer at IBM, reflects on the evolution of IPC committees and the vital importance of their work, especially in collaboratively creating industry-wide standards to guide the work of professionals in every sector. This commitment to multidisciplinary cooperation is a mindset that should be fostered at the start of every career.

03/02/2023 | Nolan Johnson, I-Connect007

In his State of the Union address in early February, President Biden departed from his usual topics about education and the economy to mention the new CHIPS Act, as well as supply chain and infrastructure issues. For perspective on those remarks, Nolan Johnson chats with David Schild, executive director of the Printed Circuit Board Association of America (PCBAA).

02/27/2023 | Pete Starkey, I-Connect007

The EIPC Winter Conference returned to the Metropolis of Lyon in eastern France this month. In 2018, the venue was Villeurbanne in the Auvergne-Rhône-Alpes region. Five years later the setting was the Groupama Stadium in Décines-Charpieu, and leaders of the European printed circuit community gathered in expectation of a spectacular programme of 16 presentations, a visit to a nuclear power station, and an invaluable networking opportunity. They weren’t disappointed.