Dr. Robert N. Castellano, The Information Network
NEW TRIPOLI, USA: Our monthly leading economic indicators are pointing to a weakening of the global economy in mid-2011 resulting in a slowdown in semiconductor revenues. Personal consumption will remain sluggish in the second half of 2011 because of a jobless recovery, further deterioration in credit, and continued weakness in home prices.Source: The Information Network, USA.
The US is the largest consumer electronics market. In 2010, 20 percent of the global consumer electronics revenue came from purchases in the US/Canada, followed by Western Europe with 19 percent. Weak consumer demand in 2011 would translate to weak chip sales.
Our Global Monthly Proprietary Leading Indicators are supplied as a correlation with semiconductor and semiconductor equipment sales expectations four to six months out, as illustrated in the chart below:Source: The Information Network, USA.