Tech Recovery Has Been Around for a While

In yet another sign that demand for electronic goods is strengthening, the latest book-to-bill ratio for the circuit board industry indicates that demand has stayed ahead of supply for five months in a row.

Taken by itself, the positive book-to-bill (a measure comparing orders to shipments in a given month) is generally seen as a short-term indicator, building on the excitement generated by Intel's(INTC Quote) most recent earnings announcement and surprisingly robust PC sales reports from industry analysts. But other important signals, including order data from the Department of Commerce, show that the recovery may have been well under way for some time.

According to the Commerce Department, orders for computers and other electronic products (excluding chips) have increased five months in a row. The most recent data available show that orders for electronics products increased by 2.6% sequentially to $31.5 billion in September, the largest monthly total since March 2001, when orders totaled $33.4 billion. ...