NEMA’s EBCI Index for Current Business Conditions Slides in January But Still Strong

The Electroindustry Business Confidence Index (EBCI) for current North American business conditions continued to point to a broadly improving business environment in January. The EBCI, a survey of senior executives of the National Electrical Manufacturers Association (NEMA), Rosslyn, Va., measured 63.6 points, down 4.4 points from December’s 68 points, but near the high end of the range of readings recorded since the beginning of the third quarter of 2010. A reading above 50 indicates more panelists reported conditions improved compared to the previous month than reported they worsened.

The EBCI for North American conditions six months in the future rose for a fifth straight month in January. The index reached a very strong 88.6 points with an increase of 10.6 points, its highest mark in nearly seven years. A large majority of survey panelists (77 percent) expect to see conditions improve by mid-2011, while none of the 22 respondents anticipate deterioration. Results in the EBCIs for global markets were fairly strong. Latin America had an increase of 0.9 points for current conditions and a drop of 0.8 points for future conditions. Europe’s EBCI for current conditions slipped 2.8 points, but enjoyed an increase of 1.8 for future conditions. The Asia-Pacific region had a strong 4.2-point increase for current conditions and a 0.5-increase for future conditions.