NEMA’s EBCI Indexes Slip in February But Remain in Very Positive Territory

The shift in the share of respondents reporting “unchanged” to “worse” conditions led to a decrease in the current conditions component to 57.7 points in February, down from the previous month’s 62.5 points.
After having expanded for four consecutive months, the current conditions reading still stands at its second highest point since Feb. 2023. Although the quantitative score declined, the member comments, similar to last month were mixed, largely reflecting stability. EBCI panel members mentioned large data center projects in the coming months, and solid orders activity in the first quarter, but at least one respondent noted concern about rising supply chain disruptions.
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.
The percent of respondents expecting to see “worse” conditions in six months increased from 6% to 15% in February. Although those anticipating that conditions will remain “unchanged” decreased, the majority of respondents who expect “better” conditions held steady, leading to a 4.4 point drop to 76.9 points for February’s future conditions component. Some of the comments noted expectations for lower inflation and interest rates, and improvements in the residential markets in the second half of the year.