NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions retreated nearly 13 points in April to 59.1 points, following a sharp run-up earlier in the year to its highest levels since 2005. Despite this slide, NEMA says the index continues to point to an economic environment conducive to industry growth.
Index readings above 50 points indicate more panelists than not reported an improved business environment. The EBCI is a monthly survey of senior executives at electrical manufacturing firms published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.
While the majority of survey panelists — nearly 64% — reported no change in business conditions from March to April, a sizable minority of over 27% said conditions improved. About 9% experienced deterioration in the business climate in April. The EBCI for future North American conditions was strongly positive again in April. Though the index declined just over four points to 81.8 points, it remained at the high end of its historic range as 72% of respondents, the same large majority as in March, said they expect conditions to improve to at least some degree over the next six months. For a second straight month, none of the panelists reported that they expect the business environment to worsen.
The global EBCI Indexes were mixed in most regions, with the exception of the Latin America region, which showed gains of 4.2 points and 1.3 points for current and future conditions, respectively. Europe suffered a 27.5-point decline for current conditions and a 0.3-point drop for future conditions, while the Asia/Pacific region was down 6.2 points for current conditions and 3.5 points for future conditions.