NEMA’s EBCI Index for Current Conditions Surges to Highest Mark Since Sept. 2005

In moving from 72.2 last month to 76.5 in March, the NEMA Electroindustry Business Confidence current conditions index reached its highest level since Sept. 2005. Although some executives remarked on confusion in Washington and flashes of social unrest, signs of a strengthening economy noted by others were apparently widespread among panel members. The share of those indicating better business conditions increased by 9 percentage points to 59% in March, and all of that increase came as a result of a 9 percentage point drop in the “unchanged” conditions category, from 44% in February to 35% in March. Like last month, only 6% reported worse conditions.

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.

The aggregated future conditions responses were identical to the current conditions components this month. The overall index of conditions expected six months from now drifted down to 76.5 points from last month’s reading of 77.8 points. The 59% of respondents expecting better conditions is down from 67% last month, while the percentage that foresees unchanged conditions leapt by 13 points to 35% in March. Meanwhile, the 6% of those expecting worse conditions marks a 5% decline from February’s results.