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NEMA EBCI Index for Current Conditions Drops Into Contraction Territory in December

Jan. 8, 2016
NEMA’s Electroindustry Business Conditions Index (EBCI) for current conditions in North America fell to 41.2 in December as a larger share of panelists reported conditions deteriorated (35%) than reported they improved (18%).

NEMA’s Electroindustry Business Conditions Index (EBCI) for current conditions in North America fell to 41.2 in December as a larger share of panelists reported conditions deteriorated (35%) than reported they improved (18%). 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 see conditions improving than see them deteriorating.

Forty-seven percent of the panelists stated that the business environment was unchanged. The December EBCI reading represented a substantial decline from November’s reading of 58.3. In November, only 17% of panelists claimed business conditions worsened, while 33% reported they improved and 50% stated they were unchanged.

Meanwhile, the EBCI for future North American conditions slipped to 52.9 in December from 55.6 in November. A smaller share of panelists in December (29%) expect conditions to improve over the next six months than was the case in November (33%). A slightly larger share in December (24%) expect conditions will deteriorate than was the case in November (22%). The share expecting to see no change in business conditions rose to 47% in December from 44% in November.