NEMA’s January EBCI Indexes Reflect Increasing Confidence in U.S. Business Conditions

After declining to 50 points in December, the electroindustry business confidence index current conditions component rebounded to 68.8 points in January. Overall, panel members shared a positive outlook, with 44% reporting that current conditions were “better” compared to last month, 50% indicating “unchanged” conditions, and 6% noting that current conditions were “worse.” Panelists’ comments were generally positive with many citing strong orders, but with caution due to market uncertainty about the new administration’s economic and tariff policies.

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 future conditions component continued to indicate positive expectations. After slipping to 67.9 points in December, the index rose to 78.1 in points January, approaching the 80-point range seen over the previous six months. Nearly two-thirds, 63%, of panel members anticipated “better” conditions in the next six months and 31% anticipated “unchanged” conditions. The remaining six percent predicted “worse” conditions six months from now. Comments on future business conditions were generally optimistic, with panelists forecasting a strong year ahead, though some expressed uncertainty due to potential tariffs.