NEMA’s EBCI Indexes Decline In July But Remain in Positive Territory
Key Highlights
- Future conditions remain optimistic, with 70% expecting better conditions in six months despite some concerns about tariffs and trade policies.
- Comments reveal a divided outlook, with some firms experiencing steady orders while others face market uncertainties.
- Overall confidence remains positive, but the slight decline suggests cautious optimism amid ongoing trade policy debates.
The Current Conditions component of NEMA’s monthly survey of executives at electrical manufacturers declined in July, falling to 50 points from 60 points in June. Sentiment shifted sharply to one of seeing conditions as “unchanged,” a view held by 40% of respondents in June that jumped to 80% in July. Comments reflected mixed sentiment, with many respondents citing uncertainty around market conditions, trade policy and tariffs. However, some noted steady order volumes and reported being busy.
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.
The Future Conditions component declined negligibly to 75 points in July, down from 76.7 points in June, and pointing to continued optimism, which remained strong, with 70% of panelists expecting conditions to be “better” six months from now. However, 20% anticipated conditions will be “worse,” a notable increase from prior periods, while 10% believed conditions will remain “unchanged.” Comments reflected a divided outlook, with some panelists expecting tariffs and trade policy to stabilize, while others saw no resolution in sight. Overall, while confidence eased slightly, the outlook for the near future remains positive.
