Chip Orders Dip in March

A key measure of new orders for U.S. manufacturers of computer chips, the book-to-bill ratio, fell slightly to 1.17 in March from 1.18 in February, a trade group reported Thursday.

Nevertheless, the Semiconductor Industry Assn. predicted that 1988 would show 20% gains for chip manufacturers and said the industry’s level of activity closed the first quarter near four-year highs.

The book-to-bill ratio is a measure of orders to billings. A ratio of 1.17 means that for every $100 of product shipped manufacturers received $117 in new orders.

Both February and March figures were reported on a preliminary basis. The association put the January ratio at 1.15.

“We are continuing to view 1988 with prospects of better than 20% growth in the U.S. market,” said Doug Andrey, the trade group’s manager of industry statistical programs.

The SIA put average monthly bookings for the 3-month period ended in March at $1.126 billion, 4.3% above the $1.079 billion reported for February and at the highest level since July, 1984.

In March alone, billings rose 19.8% to $1.081 billion from February’s $902.5 million, SIA said. The trade group said the only time billings were higher was in September, 1984, at $1.117 billion.

March billings were 9.6% above the $986.1 million posted at the end of the 1987 fourth quarter and 23% higher than the $880 million reported in March, 1987, SIA said.

The trade group said industry billings struck a cyclical low at $555.9 million in January, 1986, while average monthly orders struck a low at $473.6 million in September, 1985.