NEMA EBCI Index Slumps in April

NEMA’s Electroindustry Business Conditions Index (EBCI) for current conditions in North America declined in April after holding largely steady during the first quarter. The index fell to 54.8 after ranging from 57.5 to 58.3 during the January to March period. The share of panelists stating that business conditions improved on a month-over-month basis rose to 38% in April from 33% in March. However, the share claiming conditions deteriorated rose even more — to 29% in April from 17% in March. One-third of panelists reported business conditions were unchanged in April, versus half in March.

The EBCI Index 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 from the electrical market see conditions improving than see them deteriorating.

The EBCI for future North American conditions declined for a second month in a row. The index retreated to 66.7 points in April from 75 points in March and 78.9 points in February. Forty-eight percent of April’s panelists expect the business environment to improve over the next six months, while 14% expect it to decline. In March these figures were 61% and 11%, respectively.

In other related economic news the 2015 housing market’s slow start, probably due in part to rough winter weather, may account for the decline in optimism. While total and single-family housing starts rebounded in March, all segments of the homebuilding business were down  year over year (YOY). Total housing starts were up 2% in March to 926,000, but were down 2.5%YOY, while single-family starts were up 4.4% to 618,000 but down 2.7% YOY.  At 287,000 starts, multi-family starts were down 7.1% in March and down 4.7% YOY.