NEMA Execs Still Bullish; May’s EBCI Future Business Conditions Index Gains 2.2 Points
The ElectroIndustry Business Conditions Index increased to 72.7, with a majority of executives expecting better conditions in six months, despite current uncertainties related to trade, inflation, and geopolitics.
The Current Conditions component of NEMA’s ElectroBusiness Conditions Index registered 47.7 points in May, a decline of -2.3 percentage points from April’s reading of 50 points. Twenty-three percent of respondents reported “better” conditions, 27% reported “worse,” and 50% indicated conditions were unchanged. Overall, respondents reported little month-to-month change on average, with most panelists indicating unchanged conditions or only modest movement. 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. The outlook stayed positive in May, as the Future Conditions component increased to 72.7 points from April’s 70.5 points. Looking ahead six months, 59% of respondents expected conditions to be “better”; 14% anticipated conditions would be “worse”; and 27% expected conditions to remain unchanged. Compared to the prior month, the share expecting improvement was unchanged, the share expecting worse conditions declined, and the share expecting unchanged conditions increased modestly. Respondents generally expected demand to remain supportive, though trade policy, inflation and geopolitical developments remained downside risks.
