NEMA’s EBCI Indexes for October Reflect Continued Optimism for Business Conditions

NEMA’s Current Conditions component improved in October, rising to 58.3 points from 55 points in September. Respondents reporting better conditions slightly decreased to 33%, while those viewing conditions as worse declined to 9.1% 
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.
Similar to the September report, 50%  of panel members said conditions remained unchanged. Comments were mixed. Some NEMA execs reported being busy, working through backlogs and noting positive data center activity, yet they also mentioned the ongoing uncertainty and market chaos. 
The Future Conditions component fell to 58.3 points in October from 70 points in September, signaling a pullback in optimism while remaining above 50 points, a level consistent with expansion in the electroindustry sector. Half of panel members expected conditions to be better six months from now, while 33% anticipated worse conditions, and 17% saw them remaining unchanged. Comments reflected this divergence in sentiment. Several panel members noted stagnant or declining global markets and raised the possibility of a recession, while a few continued to expect improvement in business conditions.