Chart of the Day: Tech output dropped for 24th straight month

It shrank 7.2% YoY.

According to CIMB, tech output (33% of manufacturing) retreated 7.2% yoy last month, the 24th consecutive month of yoy declines (-19.7% yoy in Feb 12). 

This contraction alone accounted for 2.2% pts of Mar’s MPI decline. All sub-segments, except electronic modules and components (+29.7% yoy), fell further, led by data storage (-31.8%) and chips (-3.4%).

Here's more from CIMB:

On a positive note, the outlook for chip manufacturing (20% weight) seems to be looking up. World Semiconductor Trade Statistics (an independent non-profit organisation representing the vast majority of the world semiconductor industry) forecasts 2013 global chip sales to rise 4.5% after a 2.7% decline in 2012 (2M13: +2.0% vs. -8.5% in 2M12).

When the advance data was released, we surmised that the smaller decline in Mar came from a lift from the volatile biomedical cluster and a smaller drag from tech. That was indeed the case.

Pharma output expanded 42% mom or 15.8% yoy last month to its highest index reading this year. The drugs rebound added almost 3% pts to Mar’s MPI growth to narrow the yoy decline to 4.1%.