EBCI Current Conditions Index Leaps Nine Points, Future Conditions Not as Strong

A nine-point jump brought the EBCI’s current conditions component for June to its highest reading since January of this year. Although a larger share of respondents noted worse conditions this month than last, those reporting better conditions constituted a majority in June, helping to bring the overall score to 69.2 points.

The Electroindustry Business Conditions Index (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.

While the current conditions measure expanded by just over 9 points, the future conditions component contracted by an opposite and nearly equal amount, dropping from 66.7 points in May to 57.7 points this month. The proportion of panel members that reported expecting worse conditions doubled while the share of those expecting better conditions in six months edged lower. Member comments ranged from optimism about pent-up demand to concern about a potential recession driven by trade policy and the results of an overheating economy.