NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions measured 53.6 in June, its 39th consecutive month above the 50-point threshold indicating conditions favorable to growth. Although the index declined in June, the drop was modest
Meanwhile, the index for future North American conditions rose slightly from last month’s low-water mark, climbing 0.9 points to 27.8. The business environments in each of the other world regions included in the survey were somewhat stronger. Current conditions in Latin America, Europe and the Asia/Pacific region all posted strong readings in the low 60s, while future conditions measures for each of these regions reached or exceeded 50.
NEMA members’ views of North American current and future business conditions changed little from last month. At least two electrical manufacturers are still delighted with current business conditions. Said one respondent, “June started out substantially better than May, which was a terrific month.” Another manufacturer said, “June is starting out like a house afire.”
However, many respondents expect to see moderation in the rate of growth over the next few months. Said another manufacturer, “The rate of bookings has slowed in all product lines. It was to be expected after the torrid first third of the year.”
Although panelists were encouraged to see copper prices stabilize, they still expect a turbulent market for copper and other key commodities in the near future. They also expect moderate inflation to temper future