Confidence Surges as the Global Purchasing Index (GPI) for September surged more than 8% toward a positive outlook on the economy. This increase sets an all-time record for GPI since it launched in January 2014.
Four of the GPI’s indexes increased during September, with the new purchasing index seeing the most growth, rising eight percentage points. This is an indicator that buyers are making more electronic components purchases from their suppliers. The price index rose five percentage points, indicating that some buyers are paying higher prices for electronic components.
The new orders index rose four percentage points, indicating many buyers are receiving more orders from their customers; the electronic components inventories index also rose four percentage points, indicating that companies have more inventory on hand. Buyers said lead times for most components remained stable during the month.
“The monthly Global Purchasing Index measures optimism among buyers at original equipment manufacturing (OEM), contract manufacturing (CM), and electronics manufacturing services providers (EMS). A reading above 100 indicates optimism, and a reading below 100 indicates pessimism. The GPI measures business activity in five areas: new orders, inventory levels, electronic component purchases, prices, and lead times.” read the full article