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A monthly benchmark that gauges purchasing professionals’ views on procurement activity in the electronic components marketplace. A reading below 100 indicates pessimism; a reading above 100 indicates optimism.

March Index Scale

Global Purchasing’s GPI Down Slightly in March

Business outlook stays relatively consistent among electronic component buyers, new report shows 

March GPI Benchmark

Business confidence among electronic components buyers fell slightly in March, as Global Purchasing’s Global Purchasing Index decreased 1% to a reading of 114.6.

Purchasing managers surveyed for this month’s GPI reported that new orders slowed slightly during the month, inventories and pricing increased, and that purchasing activity and lead times are decreasing. New orders fell for the second straight month—down 2.3% compared to February and following a 1.8% drop in January. Inventories grew during the month following a decline from January to February, and purchasing activity fell following an increase in the previous month. After increasing from January to February, lead times remained fairly stable, falling just less than 1% in March.

Comments from purchasing professionals surveyed in March indicate slowing demand and about the same lead times for electronic components, compared to February’s results.

“Orders are up and purchases go right along with it,” said one panelist.

“Electronic distributors report their margins continue to decline with increased competition with other distributors,” another panelist said.

Some panelists indicated a slowing in orders, which is reflected in the slight decrease from last month.

“We are seeing many cases of manufacturers de-committing and reallocating unilaterally despite purchase orders being placed on time and sufficient forecasts being provided,” another panelist said. “Looks like manufacturers are having a capacity constraint and higher backlog of orders—except prices.”

Global Purchasing’s GPI measures purchasing professionals’ business confidence in five areas: new orders from customers; electronic component inventory levels; purchasing activity; pricing; and lead times. Global Purchasing compiles the GPI data monthly from a survey of more than 100 panel members who buy a wide range of electronic components. Prequalified for their industry experience, panel members are purchasing executives, managers, or buyers at original equipment manufacturing (OEM) or contract manufacturing firms around the world.

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