Report Notes Big Excess of Computer Parts

An excess of parts in the distribution chain serving computer, communications and other electronics markets will take at least until the middle of 2002 to work off, a Merrill Lynch survey found.

The survey, covering 150 of North America’s biggest companies across 10 industries, showed that excess inventory valued at about $16 billion, or 21% above past levels, must be worked off before healthy sales growth returns to the high-tech sector.