NEMA’s October EBCI Future Conditions Index Point Toward Market Optimism

This month, the electroindustry business confidence index current conditions component held steady at 69.2 points, reflecting continued improvement among industry stakeholders from a low of 46.7 points earlier this year. Thirty-eight percent of panel members reported that current conditions are “better,” while none indicated a decline, and 62% deemed the situation as “unchanged.”

The ElectroIndustry Business Conditions Index (EBCI) 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.

Panel member comments this month portray mixed sentiments, with some seeing stable orders while others report sluggish conditions and supply chain issues.

Matching a three-year high of 88.5 points last reached in July, the future conditions component rebounded to 88.5 points in October 2024, marking a continued positive outlook. Notably, no panel members expected “worse” conditions ahead, while 77% percent of panel members anticipated “better” conditions in six months, and 23% forecasted conditions to remain “unchanged.”

Comments from panel members reflected optimism, citing the resolution of election uncertainty and the possibility of another interest rate cut as positive factors contributing to their outlook.