The current conditions component has not shown evidence of sustained growth since early 2022. After settling on the threshold value of 50 points last month, the current gauge once again slipped in July, dropping seven points to 42.9 points, signaling “worse” conditions overall compared to June.
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.
Matching June’s reading of 53.6 points, the July future conditions component marked the first time since February 2022 that this six-months ahead metric remained in growth territory for two consecutive periods. A run-up in the share of respondents expecting “unchanged” conditions, combined with a still robust proportion of those anticipating “better” conditions helped buoy the outlook indicator. Cracks, such as distributors reducing inventories, have started to appear, but the “electrification boom” supported at least one respondent’s positive expectations.
Despite this month’s underwater reading, some bright spots emerged in the comments with reports of strength in markets such as infrastructure and utility upgrades.
