Chip Sales Rise in July

From the WSJ:

Global chip sales rose 1.2% in July from a month earlier despite signs of a slowing economy, with results remaining sharply above prior-year levels, according to the Semiconductor Industry Association.

Chip sales in July reached $25.24 billion, up 37% on a yearly basis. The year-to-date increase was 47% above the moribund levels seen for the same period last year as by midyear the sector was starting to come out of a sharp slump in the wake of the financial crisis.

Meanwhile, "worldwide sales of semiconductors were strong in July despite growing indications of slower growth in the overall economy," said Brian C. Toohey, SIA's new president, who took the helm last month. Although a number of major manufacturers have emphasized limited visibility for the near-term, Mr. Toohey said the industry group continues to expect that sales growth this year will be in line with its prior forecast.

.....

However signs are emerging that the growth could stall amid a choppy economic recovery. Most recently, Intel Corp. on Friday cut its third-quarter revenue and margin outlook on weaker-than-expected consumer demand for PCs in developed markets.

Equipment and software expenditures have been partly responsible for GDP gains over the last four quarters. We'll see if that continues.