EBCI Index Enjoys Spike In April

May 11, 2007
Despite concerns about a slowdown in the electrical wholesaling industry next year, the market’s short-term outlook appears solid

Despite concerns about a slowdown in the electrical wholesaling industry next year, the market’s short-term outlook appears solid.

According to the Electroindustry Business Confidence Index (EBCI), a monthly survey of senior executives in the electrical industry by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va., North American business conditions for its members improved for the second month in a row in April.

The EBCI for current North American conditions climbed to 62 points in April, its highest level in a year. The index rose from 56.5 points in March, indicating that the pace of improvement in conditions accelerated in the most recent month. The EBCI Index stood at the break-even mark of 50 points in February, suggesting that conditions were flat relative to the prior month. A reading of 50 points or more in the NEMA EBCI survey indicates that the electrical market is growing.

However, survey respondents expect the electrical market to start slowing down by year-end. The EBCI for future North American conditions retreated for the second consecutive month. April’s reading of 50 points was down from 54.3 points in March and 64.6 points in February, and indicates that survey panelists expect business conditions six months from now to stand at about the same level as currently.

While only two of the other six regional indices in April’s survey results showed increases on the month, five of the six bested the critical 50-point threshold indicative of improvements in current or anticipated business conditions:

Indicators for current and future conditions in the Asia/Pacific region declined to 53.6 points and 53.3 points, respectively.

Current conditions readings for Latin America and Europe gained ground, rising to 58.3 points and 72.7 points, respectively.