NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions tumbled in October, dropping 17.5 points to 20, its lowest level since November 2001. October’s decline represented a breakout to the downside from the low 30- to high 40-point range seen over most of the last year-and-a-half and signaled further weakening in the business environment facing electrical equipment manufacturers.
Any reading under the 50-point break-even mark signals declining market conditions.
The index is a monthly survey of senior executives at electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.
The EBCI for future North American conditions posted a large drop for a second straight month, down 11.7 points to 17.5 points, its lowest in more than two years. As recently as August, the future conditions index had measured as high as 40.7 points. Both current and future conditions indexes for each of the other three world regions included in the survey also fell in October relative to September:
- The current conditions reading for Latin America declined to 32.1 points from 55.6 points, while the future conditions indicator dropped to 10.7 points from 41.7 points.
- The current conditions reading for Europe declined to 25 points from 28.1 points, while the future conditions indicator dropped to 21.4 points from 21.9 points.
- The current conditions reading for the Asia/Pacific region declined to 30.8 from 50, while the future conditions indicator dropped to 23.1 points from 47.2 points.