NEMA EBCI Stays Upbeat in February

The Electroindustry Business Confidence Index (EBCI) for current North American conditions — derived from a survey of senior industry executives from members of the National Electrical Manufacturers Association (NEMA), Rosslyn, Va. — climbed to 69.6 points in February, up six points from January’s reading of 63.6 points. The index has topped 60 points in each of the last four months, indicating a sustained improvement in the economic environment facing a broad cross-section of electrical equipment manufacturers. A reading above 50 points indicates more panelists reported better conditions compared to the previous month than reported worse conditions. Forty-eight percent reported improved conditions in February, up from January’s figure of 36 percent. Only nine percent reported deteriorating conditions, the same proportion as in the previous month. The other panelists reported conditions were unchanged.

Though the EBCI for future North American conditions slipped modestly in February from the previous month’s near seven-year high, it remained at an elevated level by historical standards at 84.8 percent. A majority of survey panelists — 70 percent — expect to see conditions improve during the next six months, while none of the 23 respondents anticipate deterioration.

Several of the Global EBCI Indexes for current conditions saw double-digit gains, as Latin America increased 12.9 points to 68.8 points, and Europe increased 17.9 points to 67.9 points. The Asia-Pacific region dropped 9.2 points to 53.3 points for current conditions and dropped 9.4 points to 70 points for future conditions. Future conditions appear mixed in the other global regions, as Latin America increased 3.5 points to 81.3 points and Europe declined 3.1 points to 75 points.