NEMA EBCI Slides Sharply in June but Remains in Growth Territory

The NEMA Electroindustry Business Confidence Index’s 10-point slide from 70.6 points in May to 60.5 points in June brings it to the lowest level since Nov. 2016. Nevertheless, because it remains above 50 points, the EBCI value is still in the expansionary range. The share of those reporting better conditions dropped by 15 percentage points from May to June, but most of that sentiment shifted to “unchanged” as that component jumped 11 points from 47% last month to 58%in June.

The EBCI 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.

Although the future conditions index also declined, easing to 68.4 points in June from 70.6 points last month, most respondents remained optimistic about conditions facing the industry in six months. In both May and June, 53% of our panel members reported expectations of better conditions six months out, while 16% foresaw worse conditions in the latest survey. A sizeable proportion of respondents, 32%, expected to see future conditions unchanged.