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Currency Impact on Regional Industry Growth

By Dave Pheteplace | October 09, 2016

Currency fluctuation to the US dollar can have a significant impact on Bishop & Associates’ reporting of sales performance in US dollars.

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Currency fluctuation

The euro decline in value against the US dollar has essentially zeroed-out, while the Chinese yuan is now declining more in value to the dollar, and the yen is rising. The following table measures the impact for August 2016 versus August 2015 and shows the year-to-date results for these three currencies.

One Local Currency to One USD
YTD August 2016 versus August 2015

Currency flucuation dollar, yen, euro, yuan

 

Europe, China, and Japan account for 60.0% of world connector sales. As a result, currency fluctuation to the US dollar can have a significant impact on our reporting of sales performance in US dollars.

The following table shows year-to-date sales performance by region in US dollars and local currencies.

 

Industry Sales Performance
YTD August 2016
USD versus Local Currencies

Sales performance by region

Exchange rates are having the largest impact on the yuan and yen. In US dollars, connector sales have declined -0.1% through August 2016. However, in local currencies, the industry is up +0.4%. These results are much closer than they were in 2015, when exchange rates were impacting sales results by more than 5%.

Although the larger economies of the world (excluding China) are seeing less significant differences in exchange rates to the US dollar in 2016, there are other regions where exact connector sales dollars are not as visible or easy to track. In some of these regions, there is a large discrepancy in the value of the US dollar to the local currency. These regions are listed in the following table.

One Local Currency to One USD
August 2016 versus August 2015

2015 vs 2016 currency comparison

Each one of these countries is performing 1.1% to 14.7% better in their local currencies than in US dollars.

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