NEMA EBCI Drops 5.7 Points in December

The Electroindustry Business Confidence Index (EBCI) for current North American conditions fell 5.7 points in December to 48.2 points. The index failed to top the critical 50- point threshold for the first time since July, indicating modest deterioration in the business environment following a period of steady but slow growth over the last several months. The EBCI is a monthly survey of senior executives at electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.

By contrast, the EBCI for future North American conditions rebounded in December following declines in each of the two previous months. At 64.3 points, the index posted its tenth straight reading above 50 points, with a 6.3-point gain relative to November suggesting the degree of anticipated improvement in conditions over the next half year increased in the latest month.

Results from the EBCI Indexes measuring global markets were mixed. Latin America saw drops of 6.3 points and 3.8 points in current and future conditions, respectively. In Europe, current conditions were up 2.6 points and future conditions were down 0.4 points. The EBCI for Asia showed a 0.8-point drop for current conditions and a 2.2-point increase for future conditions.

One hopeful sign in the economic data is that electrical manufacturers’ new orders increased a solid 5.2 percent in October 2009 to $2.5 billion. However, that figure is down 15.2 percent from October 2008 and down 29 percent from October 2007. Another key indicator still showing weakness is electrical contractor employment. At 795,200 in October, contractor employment is down 13.3 percent year-to-year and down 15.8 percent from the October 2007 figure of 944,100.