Results from NEMA’s October business confidence survey shed light on the tentative and tepid nature of the electrical market’s recovery. The Electroindustry Business Confidence Index (EBCI) for current North American conditions lost ground in October for the first time in four months, falling 6.7 points.
Nonetheless, at 51.9 points, the index managed to stay above the critical 50-point threshold indicative of expansion for the third straight month, suggesting at least a modest improvement in industry conditions relative to September.
Published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va., the EBCI for future North American conditions also slipped in October, declining 7.5 points to 61.5 points. While many senior executives at electrical manufacturers continue to expect further improvement in the electrical market’s business environment during the next six months, anecdotal comments suggest that the degree of improvement is largely seen as limited.
The EBCI for global markets also dropped. Latin America experienced drops of 2.3 points and 3.5 points, respectively, for its current and future conditions. Europe saw larger decreases, with its current conditions dropping 5.9 points and its future conditions plunging 7.4 points. Asia, the strongest of the global markets, also declined, with drops of 4.7 points and 6 points, respectively.