To help readers get an early glimpse of any rays of sunshine, EM’s editors will be running a monthly summary of the following five indicators of economic activity in the electrical industry.
EBCI jumps 15.6 points in March. The Electroindustry Business Confidence Index (EBCI) for future North American conditions posted a sizable gain in March, jumping 15.6 points from February to 52 points. That performance marked the index’s first foray above the 50-point growth threshold since August 2007. The EBCI is a monthly survey of electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.
Purchasing Managers Index (PMI) up 0.2 points in February. While purchasing managers surveyed by the Institute for Supply Management, Tempe Ariz., were generally pessimistic about chances for recovery in 2009, the February PMI crept up a fraction of a percent in February to 35.8 points, still well below the growth threshold. A reading above 50 percent indicates the manufacturing economy is generally expanding.
February building permits rise 3 percent over soft January number. The U.S. Census Bureau says privately-owned housing units authorized by building permits in February were at a seasonally adjusted annual rate of 547,000, a three percent increase over the revised January rate of 531,000, but 44.2 percent below the revised February 2008 estimate of 981,000.
Architecture Billings Index (ABI) up two points in February. Following another historic low score in January, the ABI was up two points in February. The ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI rating was 35.3 points, up from the 33.3-point mark in January, but still pointing to a general lack of demand for design services (any score above 50 indicates an increase in billings).
Conference Board’s Leading Economic Index (LEI) drops 0.4 percent in February. The LEI for the U.S. declined 0.4 percent in February, following a 0.1 percent increase in January, and a 0.1 percent decline in December. The Conference Board sees growth in 2010.