NEMA EBCI Index for Current Conditions Drops Into Contraction Territory in December

NEMA’s Electroindustry Business Conditions Index (EBCI) for current conditions in North America fell to 41.2 in December as a larger share of panelists reported conditions deteriorated (35%) than reported they improved (18%). The EBCI Index is a monthly survey of senior executives at electrical manufacturers published by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va. Any score over the 50-point level indicates a greater number of panelists see conditions improving than see them deteriorating.

Forty-seven percent of the panelists stated that the business environment was unchanged. The December EBCI reading represented a substantial decline from November’s reading of 58.3. In November, only 17% of panelists claimed business conditions worsened, while 33% reported they improved and 50% stated they were unchanged.

Meanwhile, the EBCI for future North American conditions slipped to 52.9 in December from 55.6 in November. A smaller share of panelists in December (29%) expect conditions to improve over the next six months than was the case in November (33%). A slightly larger share in December (24%) expect conditions will deteriorate than was the case in November (22%). The share expecting to see no change in business conditions rose to 47% in December from 44% in November.