NEMA’s Electroindustry Business Conditions Index (EBCI) for current conditions in North America improved by more than 20 points, marking an abrupt change of direction following three consecutive months of decline. The index rose to 67.5 from 47.2 a month ago and from 50 points in May. Only 10% of panelists reported worse conditions, and an equal share (45%) reported better or unchanged conditions.
The EBCI for future North American conditions also advanced, though by a lesser margin. Having come in at 52.8 in June, the future conditions index edged up to 55.0 in July. A plurality (50%) of July’s panelists expect business conditions to be unchanged over the coming six month period, 30% expect conditions to be better, and the remaining 20% foresee a worsening business environment. The greatest shift in responses compared to June’s survey results is among those who expect conditions to remain unchanged. Last month, 28% of panelists thought business conditions would be similar in six months.
The EBCI Index 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.