Electronics and Automotive
Electronics Industry Could See Spurt of Stronger Growth
Consumer spending on electronics has seen steadily slowing growth since late 1999, and electronics production has generally followed suit. However, the industry could see a spurt in growth in the second half of 2015.
The rate of growth in real disposable income has been accelerating rapidly and is growing at the fastest rate in almost eight years. In response, consumer spending on electronics has grown at an accelerating rate since the end of 2014. This accelerating growth rate has not been enough to break out of the downward trend since 1999, but at least it is positive in the short term. As long as incomes continue to grow faster, then so should electronics spending.
Electronics production has seen its growth slow even faster than electronics spending. This could be because of an increase in imports, but world trade has generally slowed in the last year, so electronics production could be poised for accelerating growth as we head into 2016.