NEMA EBCI Index for North American Conditions Increases in November

Results from NEMA’s latest business conditions survey showed the economic environment facing the North American electroindustry improved for a second straight month in November. Though the Electroindustry Business Confidence Index (EBCI) for current North American conditions slipped to 56 points from 57.4 points in the previous month, it cleared the 50-point mark above which more panelists than not see an improvement in the business environment. The EBCI is a monthly survey of senior executives at electrical manufacturing firms published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va.

Twenty percent of survey panelists reported improved conditions in November compared to the previous month, while only 8% experienced deteriorating conditions. The vast majority — 72% — saw no change in conditions. While November’s EBCI for future North American conditions eased to 60 points from 63 points a month ago, the gauge of expectation six months from now continued to point in a positive direction. Some 32% of panelists said they expected conditions to improve to at least some degree over the next six months versus 12% anticipating they will worsen.

The EBCI Global Indexes picked up on some of the uncertainty about the current and future market conditions in the global economy. The EBCI for Latin America showed no change for current conditions at 50 points, but the EBCI Indexes for Europe and the Asia-Pacific region registered decreases of 4.7 points and 4.4 points, respectively. Latin America was looking stronger for future market conditions with a 1.7-point increase to 66.7 points, but Europe saw a 16.1-point decline, no doubt in response to concerns over the banking situation there. The Asia-Pacific region declined 4.5 points to a still-healthy 4.5 points.