NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions rebounded sharply in November, rising by more than 15 points from a month ago. At 52.2 points, the index, a monthly survey of electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va. signaled the first month-to-month improvement in business conditions since April.
Indeed, November’s result broke a string of four straight (and five of six) months in which the index failed to reach the break-even mark of 50 points signaling improving economic conditions. The earlier EBCI readings pointed to deterioration in the economic environment facing electrical equipment manufacturers dating back to the early spring.
By contrast, the future conditions index for North America lost some ground on the month, slipping to 40 points from 42.6 points a month ago. The future reading has registered below 50 points for three consecutive months, and senior electrical industry executives anticipate weakening conditions in the near future.
The November EBCI report for global markets was mixed. Current and future conditions for Latin America improved to 56.2 points and 71.9 points, respectively, while current and future European conditions fell to 45.8 points and 37.5 points, respectively. The current conditions index for the Asia/Pacific region climbed to 67.9 points, while the future conditions index fell to 67.9 points.
This month’s EBCI report is in line with the construction, industrial and economic data in the Value of New Construction chart on page 3. Pockets of strength still exist in the construction market, but some of the private construction numbers started to slip in October. However, those numbers were still up significantly compared to 2006.