Global Banking Crisis Continues; Inflation Rates Remain Stubbornly High in Both Europe and the United States

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Economic data over the last month indicates that while inflation remains stubbornly high, economic growth is slowing. The base case scenario for the United States right now suggests a recession in the middle two quarters of the year. The U.S. economy should grow about 1.2 percent this year, but growth in the back half of the year will be weak.

Germany recently raised its economic growth forecast for the year to 0.4 percent, up from the previous 0.2 percent, but the environment in both the United States and Europe remains persistently difficult. It remains uncertain how sharply higher interest rates will fully impact the economy.

“Supply constraints are easing everywhere which on the surface looks like a good thing. But it likely also means that backlogs will wane in the second half of the year. In the absence of new demand, output will likely be weak,” said Shawn DuBravac, IPC chief economist.

Additional data in the April 2023 IPC Economic Outlook show:

• The U.S. economy grew 1.1 percent in the first quarter, coming in below an expected rise of 1.9 percent. However, the headline number masks underlying strength in the economy.
• U.S. manufacturing sentiment contracted for the fifth consecutive month in April. The manufacturing PMI rose 0.8 percentage points in the last month, but not enough to move back into expansionary territory.
• The European economy grew during the first quarter of the year, edging up 0.1 percent in the euro area and up 0.3 percent in the EU. The economy is up 1.3 percent in both areas compared to the first quarter of last year.
• In the EU, manufacturing output in electronics end markets rose in February, increasing 1.3% from the prior month and 2.9% from the year-ago period.

05/17/2023 | Andy Shaughnessy, Design007 Magazine

At the SMTA Atlanta Expo and Tech Forum, I spoke with NCAB Group Field Application Engineer Ramon Roche, who gave a presentation at the show titled, “Technical Trends in the Global PCB Industry.” Ramon and I discussed his presentation, the emerging technologies that have NCAB’s focus over the next few years, and why semi-additive processes may be the key to succeeding with ultra HDI technology.

04/17/2023 | Andy Shaughnessy, I-Connect007

We want your input! PCB fabricators have been utilizing benchmarks for decades, comparing metrics for everything from manufacturing best practices to competitors’ products and services. Now, we have access to more manufacturing data than ever before, and companies can conduct benchmarking at a granular level.

04/07/2023 | Nolan Johnson, I-Connect007

The adage about spring weather in Northern temperate climates is, “April showers bring May flowers.” This is, of course, on the heels of March, when the weather comes “In like a lion, out like a lamb.” The suggestion for March is that whatever way the month starts, it will end just the opposite. But we’re in the first week of April, where things are expected to settle into a steady state of preparation for an abundance just over the horizon. Sound a bit like our business climate right now, doesn’t it?