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Oil pricing's effect on electronic equipment orders seen as minimal
October 13, 2000 |Estimated reading time: Less than a minute
Oil pricing's effect on electronic equipment orders seen as minimal Walt Custer
With the current Mideast situation, Walt Custer took a look at the relationship between oil pricing and electronic equipment orders. While he expected that oil pricing would be a strong leading indicator (causing industry slowdowns), he noted that the historical data do not support this hypothesis.
Below are the historical (1969-present) 12-month growth rates (12/12 rate of change) for electronic equipment orders (communication, computer & office, military, and instruments & controls) vs. oil prices. Walt's conclusion is that there is no obvious strong Correlation.
He noted that he will continue to evaluate high oil pricing and its possible negative effects on the electronic industry.