March U.S. electronics shipments were slightly higher and consistent with the 15 percent to 20 percent gain expected in 2004, while shipments by end-market machinery manufacturers soared.

March shipments from U.S. electronic and computer factories increased 1.5 percent from February, on track with the 17.4 percent gain from last March. Manufacturers¡¯ inventories declined 0.1 percent.

Rising semiconductor and instrument inventories mostly offset a $223 million drop in telecom equipment inventories. Also, unfilled orders rose 0.6 percent on top of a 0.9 percent rise in February. This was also entirely in the semiconductor and instrument market.

Computer, peripheral and storage device shipments increased 1.3 percent after dropping in the previous two months, while new orders were unchanged. This sub-par report was expected after a slightly weak report last week for March computer production.

Telecom shipments declined for the second month, off 1.5 percent from February, although year-to-date shipments are slightly higher. March semiconductor shipments increased 1.7 percent. This is well below the 5.5 percent average in the previous two months but on track with the 19.4 percent year over year increase.

U.S. industrial machinery manufacturers boosted shipments 4.3 percent, but this was not enough to keep up with soaring orders. Unfilled orders rose 2.4 percent, following on a 3 percent rate in February.

Motor vehicle manufacturers shipped 3.9 percent more product in March following an upwardly revised sales gain of 5.25 percent in February. This huge winter sales gain appears to have been accomplished without higher discounting, so it is more likely to be sustained than the many brief, discount-fueled sales surges in the last few years.

By: DocMemory
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