NEMA’s Electroindustry Business Confidence Index (EBCI) lost ground in October, dropping by nearly 11 points to 37 points from 47.9 points a month ago. October was the fourth consecutive month, and the fifth in the last six months, in which the index has failed to reach 50 points. A reading of 50 points or less indicates a softening economy.
The EBCI for North American current economic conditions is a monthly survey of senior executives in the National Electrical Manufacturers Association (NEMA), Rosslyn Va.
These survey results indicate that external economic conditions facing electrical equipment manufacturers have deteriorated steadily in recent months.
By contrast, the future conditions EBCI reading for North America increased modestly, climbing three points to 42.6 points. Notwithstanding October’s increase, the EBCI future conditions index registered below 50 points for a second consecutive month, again warning of a weakening of industry conditions over the next six months.
Other results from October’s business conditions survey:
Current and future conditions readings for Latin America declined to 52.8 points and 55.9 points, respectively.
Current European conditions fell to 46.2 points, while future conditions remained unchanged at 50 points.
Current and future conditions for the Asia/Pacific region climbed to 61.8 points and 71.9 points, respectively.
While the tone of this month’s EBCI report is negative, some market indicators still show positive momentum.
Manufacturers’ shipments were up 13 percent year-over-year in August, and electrical manufacturers’ new orders were up 17.7 percent over the same time period. Key new construction data was also positive. On the flip side, housing data shows the depth of the downturn in the residential market.