At 34.4 points, the current component of the ElectroIndustry Business Conditions Index suggested that business conditions may have softened in June. The nearly 16-point drop from the prior month reflected a complex mix of responses ranging from concern over the negative effects of ongoing tariff-related actions, to the salutary impact of those same trade moves, to continued or even increased strength in the market. Twenty percent of the panel reported unchanged conditions, which left the remaining 80% of responses evenly split between those noting better or worse conditions this month.
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.
For eight of the last 12 months, including the current period, the future conditions index has been under the growth threshold reading of 50 points. The June index value of 31.3 points, which marks a two-point decline from last month, is the lowest future component reading since Nov. 2008. Nearly 70% of this month’s respondents expect business conditions to be worse in six months. Virtually all comments point to public policy, especially those having to do with trade, as the main reason for the low expectations made evident in the numerical score.