NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American business conditions slid nearly seven points in July, falling to 63.5 points — its lowest level since January 2010 — from 70.4 a month earlier. Any reading above the 50-point level is indicative of growth in the market. The EBCI is a survey of senior executives of the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.
While the EBCI implies that the economic environment faced by electrical equipment manufacturers continued to improve on balance in July, a decidedly smaller share of panelists reported improvement than had been the case over the last several months. Moreover, the survey’s measure of the intensity of change in current North American conditions suggests a slowdown in the pace of improvement compared to recent months.
Meanwhile, the EBCI for future North American conditions posted its second sizable decline in as many months in July, tumbling 12.7 points to 57.7 points on the heels of June’s 6.7 point fall. While the index continues to forecast further improvement in business conditions over the next six months, the recent sharp drop-off, as well as the high degree of concern expressed in panelist comments, suggests forthcoming improvements may be of only limited strength.