Though NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions retreated slightly in June, a companion indicator of expected conditions six months ahead climbed to its highest level in nearly four years. The North American current conditions EBCI slid 6.6 points to 41.3 points.
While that was only the second decline in the last six months, a period which has seen a rebound from an all-time low of 8 points in December 2008, the index has remained below the key 50-point mark associated with conditions supportive of industry growth since November 2007. The EBCI is a monthly survey of electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.
Meanwhile, optimistic responses to NEMA’s monthly survey question regarding future expectations have grown steadily more prevalent since late winter. The EBCI for future North American business conditions rose in June for a fourth month in a row, increasing nearly 3 points to 68.2 points, the highest level since August 2005. This indicates that more industry executives see an improvement of at least some degree in the business environment within the next six months from today’s depressed levels.
However, both the current and future EBCI indexes dropped in all other international markets. The Asia/Pacific EBCI for current conditions dropped 11.9 points to 50 points and its future conditions index slid 5.6 points to 79.4 points. Europe’s EBCI future conditions outlook plunged 12.7,while current conditions skidded 12.6 points. Latin America’s EBCI saw a 4.4-point decline for current conditions and a 1.1-point decline for future conditions.