NEMA’s EBCI Index for Current Conditions Slips Into Contraction Mode in September

The six-month run of NEMA’s Electroindustry Business Conditions Index (EBCI) scoring 50 points or higher has ended with September’s result of 47.1 points. Dropping below 50 points suggests that current conditions are no longer conducive for expansion in the electrical manufacturing sector. Only 24% of respondents reported better conditions in September, versus 33% last month. The share of respondents reporting worse conditions nearly doubled from 17% in August to 29% this month, while the proportion of panel members who noted unchanged conditions showed little movement — 47% this time compared to 50% last month.

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.

NEMA’s EBCI  Future Conditions Index, although still in the range indicative of expansion, dropped considerably from 66.7 points in August to 52.9 points this month. Mirroring the current conditions responses, 47% now expect conditions to remain unchanged in six months, compared to 33% in August. The share of respondents expecting better conditions has eroded to 29% in this month’s survey versus 50% last month, and 24% of September’s respondents foresee worse conditions in six months, up from 17% in August.