In February just over half (54%) of panel members reported “unchanged” conditions. That number increased to 67% in March. The increase of respondents reporting “unchanged” conditions led to a decrease in the current conditions component to 53.5 points in March, down from the previous month’s 57.7 points. The member comments were mixed but focused on stability. Members mentioned stable conditions and no significant changes. Some comments noted mega projects continuing and quotations still at record levels, with the caveat that incoming orders have slowed due to excessive inventory levels.
The ElectroIndustry Business Conditions Index (EBCI) is a monthly survey of senior executives at electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, VA. Any score over the 50-point level indicates a greater number of panelists see conditions improving than see them deteriorating.
Similar to current conditions the percent of respondents expecting to see “unchanged” conditions in six months increased, while those expecting “better” conditions decreased this month. The shift in expectations from better to unchanged led to a 3.6-point drop from the February reading to 73.3 points for March’s future conditions component. The comments were mixed with some sounding a note of caution regarding inflation and signs of slowing in some sectors of the economy, with uncertainty surrounding this year’s election cycle also receiving attention.
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