NEMA’s EBCI for Current Conditions in April Drops but Future Conditions Index Surges

In NEMA’s latest ElectroIndustry Business Conditions Index (EBCI) survey, 66% of panel members reported unchanged conditions, consistent with March’s findings. However, an increased share of respondents reporting worse conditions led to a decrease in the current conditions component to 46.7 points in April, down from the previous month’s 53.7 points. This is the first time since July 2023 the current gauge dropped below the threshold value of 50, indicating a contracting electroindustry sector.

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.

In contrast to the current conditions component, the percent of respondents expecting to see unchanged conditions in six months declined in April while the proportion of those anticipating better conditions surged. The shift in expectations from unchanged to better led to a 10-point increase from the March reading to 83.3 points for April’s future conditions component. Comments were mixed with some expressing expectations of improved demand in the residential market while others noted signs of slowing in certain sectors of the economy.