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NEMA’s September EBCI Index for Current & Future Business Conditions Indicate Growth

Oct. 5, 2023
The EBCI Indexes settled in at a marginal growth rate for September.

In September, the current conditions component settled at 50 points for the second consecutive month. The 29% share of respondents that reported “better” conditions exactly matched those noting “worse” conditions, for a net result of unchanged from the prior month. Panel members’ comments suggested sectors such as power utility, industrial, data center and infrastructure remained strong, but excess inventories, “sporadic supply chain issues,” and slowing orders activity were notable concerns.

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.

Down 12 points from last month, the future conditions component still signaled expected growth in six months as the forward-looking measure registered 53.6 points in September. More than one third of respondents anticipated “better” conditions ahead, and a similar proportion expected conditions to be “unchanged.” Panel members cited infrastructure projects, e-mobility and an improved residential construction market as anticipated market drivers, but some were wary of potential impediments such as tighter credit conditions, rising debt and a tenuous geopolitical environment.