NEMA’s EBCI Index Slips in September But Remains in Positive Territory

The Current Conditions component of NEMA’s EBCI eased slightly in September, slipping to 55 points from 59.1 points in August. Respondents reporting “better” conditions rose to 30%, while those viewing conditions as “worse” increased to 20%.
The ElectroIndustry Business Conditions Index (EBCI) is a monthly survey of executives at electrical manufacturers published by the National Electrical Manufacturers Association (NEMA). Any score over the 50-point level indicates a greater number of panelists see conditions improving than see them deteriorating.
Fifty percent of respondents indicated that conditions remained unchanged. Comments were mixed. Several respondents cited ongoing concerns about tariffs and noted that continued uncertainty is negatively affecting business. However, one panel member reported that despite the “noise,” business continued to improve, suggesting uneven impact across sectors from shifting tariff policies.
The Future Conditions component declined to 70 points in September from 72.7 points in August, reflecting a modest pullback in optimism. Half of respondents expected conditions to be “better” six months from now, while 10% anticipated “worse” conditions, and 40% saw them remaining “unchanged.”  Some participants expressed hope that current market uncertainty would begin to ease, with expectations of interest rate relief and greater clarity around tariffs.
Others warned that tariff-related inflation could begin to affect business conditions in the near term. While overall sentiment remained positive, it was tempered by divergent views on how key economic pressures will play out.