NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American business conditions again moved upward, climbing to 45.5 points in October from 42.1 points in September and 35.7 points in August. Its recent rebound has left the index just short of the 50-point breakeven level last surpassed in June. The EBCI is a monthly survey of senior executives at electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.
Just over 18% of panelists reported a “better” business climate in October compared to the previous month, an improvement from 11% in September, but still less than the 27% reporting “worse” conditions in October relative to September. The majority of the panel — nearly 55% — reported conditions had not changed from September to October.
The EBCI for future North American conditions edged upward to its highest level in five months in October at 65.9. The index had registered 63.2 in September. More than 36% of panelists said they expect conditions to improve to at least some degree over the next six months, while less than 5% expect them to worsen. In September, about 42% expected an improvement in conditions within six months versus approximately 16% anticipating deterioration.
Several of the global EBCI indices saw marked increases for both current and future business conditions. Latin America saw a 24-point surge to 46.7 points for current conditions and a 7.2-point increase to 71.9 points for future conditions. At 39.3 points and 46.4 points for current and future conditions, respectively, Europe was moving in the right direction in October, with increases of 7.2 points for current conditions and 4.1 points for future conditions. The EBCI index for the Asia/Pacific region was mixed, with a 4.7-point increase to 39.3 points for current conditions and a 6.4-point drop to a still-strong 66.7 points for future conditions.