NEMA’s EBCI Index Shows Sharp Decline

NEMA’s Electroindustry Business Conditions Index (EBCI) for current conditions in North America fell back in February, dropping to 44.4 points from 50 points the previous month as more panelists reported conditions eroded than improved.

Compared to January, smaller shares of the survey panel reported both that business conditions improved (22% in February compared to 41% in January) and that they deteriorated (33% in February compared to 41% in January). A plurality of panelists (44%) claimed conditions were unchanged in February. A considerably smaller 18% held this view a month ago.

Even though more panelists than not expect the business environment to improve over the next six months, the EBCI for future North American conditions also dropped in February, falling to 52.8 from 67.6 in January. A smaller share of the panel (33%) reported positive expectations than was the case last month (53%), while a larger share (28%) reported negative expectations than was the case in January (18%).

The share expecting to see no change in business conditions over the next six months rose to 39% in February from 29% in January.