Mirroring reports of a broadly surging manufacturing sector, the current conditions component reached its all-time most expansive reading in April, hitting 89.5 points. The nearly 10-point increase from the previous month resulted in part from a drop in the share of participants who reported unchanged conditions, with additional impetus from having no respondents indicate worse conditions in April.
The ElectroIndustry Business Conditions Index (EBCI) is a monthly survey of senior executives at electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, VA. Any score over the 50-point level indicates a greater number of panelists see conditions improving than see them deteriorating.
Following a three-month stretch during which none of the panelists indicated expectations for worse conditions in the near future, a slight tick-up in that category helped pull down the topline reading marginally from 90 points previously to 86.8 points in April. As the potential for rising inflation gained traction recently, a similar concern has crept into the commentary provided by panel members. However, on the whole, EBCI respondents appeared to be expecting continued improvements as pent-up demand is released and projects that were previously put on hold move forward.