Data from NEMA's monthly survey on the electroindustry business environment showed a slight decline in business conditions in October, but an improvement in expectations for future conditions. The Electroindustry Business Confidence Index (EBCI) for current North American business conditions, a survey of senior executives of the National Electrical Manufacturers Association (NEMA), Rosslyn, Va., fell to 48 points from 53.6 points in September. A reading above 50 points indicates more panelists than not reported conditions improved during the month, while a reading below 50 points indicates more panelists than not reported conditions deteriorated.
Sixteen percent of panelists reported better conditions in October, compared to September's figure of 25 percent. Meanwhile, 20 percent reported worse conditions in the latest month, against 18 percent in September. The majority of panelists in both months reported conditions were unchanged.
Meanwhile, the EBCI for North American conditions six months in the future climbed for a second straight month. The index reached 68 points, up from 66.1 points in September and 54 points in August, and continues to indicate that more panelists than not expect the business environment to improve over the next six months. Forty-four percent of panelists expect to see better conditions by April 2011, compared to only eight percent anticipating a weakening.
The global EBCI Indexes were mixed. Europe was the only region that saw declines in both its current and future indexes, with declines of 3.6 points and 3.3 points, respectively. Latin America's EBCI dropped 4.8 points for current conditions but increased 4.1 points for future conditions. The Asia/Pacific region had increases of 1.3 points and 1.9 points, respectively, for current and future conditions.