NEMA’s Electroindustry Business Conditions Index (EBCI) for current conditions in North America jumped to 66.7 in April, up from readings of 52.6 in March and 50 in February, the value typically associated with a stable business environment. The EBCI for future North American conditions continued to signal widespread optimism. Indeed, the index for conditions six months hence improved to 92.9 from 86.8 in March, reaching a peak not recorded since 2002.
The share of respondents that reported conditions improved in April rose to 48% from 26% in March while the share reporting conditions deteriorated slipped to 14% from 21%. Thirty-eight percent of respondents indicated that conditions were unchanged from March to April. The survey’s measure of the mean degree of change in current North American conditions also rose in April, increasing to +0.7 from +0.6 in March. Panelists are asked to report intensity of change on a scale ranging from –5 (deteriorated significantly) through 0 (unchanged) to +5 (improved significantly).
The EBCI for future North American conditions continued to signal widespread optimism. Indeed, the index for conditions six months hence improved to 92.9 from 86.8 in March, reaching a peak not recorded since 2002. Eighty-six percent of survey respondents said they expect conditions to improve over the next six months, up from 74% in March. For a sixth straight month none of the survey respondents reported that they anticipate a near-term deterioration in the business environment.