Global sales of semiconductors have fallen sharply over the last year or so. Semiconductor sales are an important global export product used in both business and consumer appliances. Therefore, they are often seen as an indicator of future growth.
From a distance, the correlation between global semiconductor sales and global earnings per share looks reasonably strong. This would suggest that earnings per share will fall in the coming quarters, something that is not all that unlikely given recent economic developments.
One caveat, however, is that the semiconductor sector has its own dynamics as well, like inventory cycles, which could distort the picture. In any case, today’s chart is an interesting one to keep an eye on.