The gloom enveloping the European components market was endorsed by new figures from the International Distribution of Electronics Association (IDEA).
It's latest report showed the decline in the European Distributors' Total Available Market (DTAM) accelerated in the fourth quarter of 2008.
Total bookings were eight per cent down on the previous quarter and 17 per cent down on the corresponding quarter of 2007. Specifically, semiconductors were down 17.1 per cent against the fourth quarter of last year. Passives declined 17.4 per cent and electromechanical components and other components were off 16.5 per cent on last year.
Billings (net sales invoiced less credits) fell 8.9 per cent compared with the previous quarter of 2008, and declined 10.3 per cent against the fourth quarter of 2007.
Semiconductor billings were down 9.8 per cent, passives declined 11.2 per cent and e-mech and other components billings dropped 11.3 per cent.
"The sharp decline in bookings in Q4 2008 suggest that 2009 is unlikely to follow historical trends ," said Adam Fletcher (pictured), vice president of IDEA. "A declining first half followed by a modest improvement in the second half looks a more plausible scenario."
Fletcher says IDEA has limited market visibility, however the association believes that billings will decline in the range of 10 per cent to 14 per cent in the first half compared to the same period last year.
"I don't believe anybody can forecast accurately today, but it seems likely we will end in negative territory," continued Fletcher. My best guesstimate would be in the range of five per cent to eight per cent."
IDEA's figures are compiled from statistics provided by distributor trade associations in the UK and Nordic, Italy, Germany and France. The association also gathers figures from over 100 distributors operating in Denmark, France, Finland, Italy, Germany, Norway and the UK.
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