Real inflation is the real culprit

Article Abstract:

Economic indicators suggest 1997 will be a year of steady but moderate growth, with low unemployment and inflation. A growth rate of 2 to 2.5% is the consensus expectation, and inventory levels are lower than they were a year ago. While volume growth in the electronics industry is expected, increasing price pressure may hold down revenues. A strong dollar means U.S. exports will be weak in 1997. European Monetary Union treaty requirements, which must be met in 1999, mean many European countries are implementing financial austerity plans. Japan's economy is also expected to be stagnant. Analysts disagree over whether or not capital spending will increase. Some claim that capital costs are declining compared to those of labor, citing low interest rates as an added incentive to capital spending. Others suggest that the inflation rate was overstated by 1.1%, meaning that interest rates are higher in real terms than previously thought.

Preview of coming year, Technological forecasting, Market trend/market analysis

---

Trauma in capacitors

Article Abstract:

The capacitor industry is paying the price for poor sales in 1995 as an inventory buildup has contributed to price erosion, according to Vishay Intertechnology CEO Felix Zandman. Part of the problem is the soft European market, although German orders are increasing at 10% per month. Zandman believes that the market has bottomed out but does not expect firmer prices or the end of the inventory glut in 1996. Vishay will look to internal means of improvement such as cost reduction or possibly a merger and is projecting a sales decline of at least 10% in 1996. There is customer demand for integrated passive components, smaller and lower voltage devices, according to AVX marketing director Johnny Sarvis. There is overcapacity in the market but improvements in sales of computers and cellular telephones could help capacitor sales.

Electronic capacitors, Editorial, Marketing, Capacitors, Market Trend/Market Analysis

---

Now, a strong dollar is taking its toll

Article Abstract:

The electronics industry may not enjoy a lucrative second half in 1996, despite the end of price wars that have devastated profits in the first half. The stronger dollar is expected to cut into companies' profits, especially for those that have a strong European and Japanese presence. The deutsche mark is expected to fall to 1.6 or 1.7 to the dollar, which represents a 25% decline from its high in 1995. The Japanese Yen is expected to fall 50% to a 120 Yen-to-dollar exchange rate. Long term prospects look good with the foreign trade deficit shrinking and inflation being kept in check by a watchful Federal Reserve. Inflation is still an economic factor that can cause some travail in coming months from unexpected hikes in fuel or food prices.

Economic aspects, Industry trend, Dollar (United States), International markets, World Market

Similar abstracts:

• Abstracts: Streamlining the service repair experience. Retail in a Google world. The high cost of health
• Abstracts: Integrators to the rescue. Over the top. Refuse realization
• Abstracts: Flourishing wireless applications push upgrades in RF parts. LTCC technology raises efficiency at high frequencies
• Abstracts: Flourishing wireless applications push upgrades in RF parts. part 2 Demand grows for short, narrow connection, conversion parts
• Abstracts: Real-time returns. Jerry Throgmartin, Chairman and CEO, hhgregg. 'Recovering' new business

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.