Current conditions retreated in February but did not fall back out of expansionary territory. The 9-point slide from last month’s result left the February number at 50 points. The share of respondents from the National Electrical Manufacturers Association (NEMA), Rosslyn, VA, noting better conditions declined, while the number reporting worse conditions increased by a similar amount. The proportion of unchanged responses held steady.
The ElectroIndustry Business Conditions Index (EBCI) is a monthly survey of senior executives at electrical manufacturers published by NEMA. Any score over the 50-point level indicates a greater number of panelists see conditions improving than see them deteriorating.
Much of the commentary contained a sense of optimism shot through with concern over the coronavirus and its effects on supply chains.
Driven largely by a decrease in the proportion of respondents expecting worse conditions, the future conditions component surged nearly eight points this month to a 63.9-point reading. The February score marked the highest level of optimism since May 2018. According to comments, a solid start to the year and the improving trade environment has buoyed expectations despite market disrupters such as the coronavirus outbreak, Brexit, and the upcoming U.S. elections.
