NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions measured 51.8 in July, its 40th consecutive month above the 50-point threshold indicating conditions favorable to growth. Although the index declined in July, the drop was modest — only 1.8 points from June’s reading of 53.6 points. The EBCI is a monthly survey of electrical manufacturers conducted by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.
Meanwhile, the index for future North American conditions slumped to 23.2, the lowest mark in its five-year history, falling 4.6 points. The business environments in the other world regions included in the survey were somewhat stronger. Current conditions in Latin America, Europe and the Asia/Pacific region all posted strong readings in the high 50s to mid-60s. The future conditions measure was nearly unchanged from June for Latin America at 56.3, while readings for Europe and the Asia/Pacific region dropped sharply, with the value for Europe dipping to the low 40s and Asia/Pacific coming to rest right at 50.
The response of NEMA-member executives to July’s Electroindustry Business Confidence survey suggested the rate of improvement of the business environment is down yet again.
“While our business is still booming, I have not seen any real change in ‘economic’ conditions,’” one respondent said.
Because of modest declines over the past several months, current conditions EBCI is only slightly above the 50-point threshold indicative of sectoral growth.
In addition, the survey’s measure of average intensity of change in current North American conditions fell for the third straight month. This intensity fell to .1 in July, which is down from .2 in June, .5 in May and 1.1 in April, on a scale of –5 indicating large-scale deterioration and 5 indicating large-scale growth.
Another respondent said: “Market continues to show strenght in spite of inflationary pressures.” One respondent summarized: “Issues: Oil prices, interest rates, political unrest in Mexico and South America, Middle East unrest/war?”