Bouncing back from last month’s dip to 46.4 points, the current conditions component recorded the highest reading since last spring, coming in at 66.7 points in February. The 20-point swing was propelled by a sharp increase in the proportion of respondents that reported “better” conditions, even as “worse” responses dropped to zero.
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.
Comments painted a picture of robust demand, as evidenced by strong orders activity, hampered by transportation and other supply chain difficulties, with one executive summing up the situation: “Record quotations and orders, now if we could only ship the stuff.”
The outlook regarding future conditions cooled this month but remained in the expansion zone at 54.2 points. After attaining a near-term high point of 78.6 points in January, a sharp uptick in the share of respondents expecting “worse” conditions eroded some of that earlier optimism. Comments continued to demonstrate concern about supply chain constraints as one respondent noted that they do not expect “improvement on the people or supply chain side until 2023.” As with the current conditions component, panel members reported a sense of strong demand held somewhat in check for now.
