LONDON, UK: Europe’s semiconductor industry seems to be heading for better times.

A study by Durham-based economic research firm e-forecasting.com, has found that it is optimism all around and that the rosier outlook is based on the rise of the European semiconductor sales indicator which zoomed by 1.7 per cent during August to 165.8. It may be noted that the rise is on top of a 2 percent increase recorded during the previous month.

The study noted that this was the fourth consecutive month the growth rate of the leading indicator stayed positive. The rise in the indicator has in fact surpassed the long-term growth rate for the region of 10.1 percent, it said.

These figures show that this is the first time since August of 2004 that the six month growth rate is above the long term trend, the study added.

Clearly, business is on a high. Further to these numbers, it has also been found that the semiconductor leading indicator's six month growth rate rose significantly by 12.7 percent in August 2009, The July growth rate had zoomed by 9.6 per cent.

The study was conducted by the research firm based on productivity, non-EU demand prospects, partner nations, US monetary conditions and a host of other barometers.