NEMA’s North American EBCI Index Finds Electrical Execs Still in Growth Mode

Senior executives at NEMA member companies reported mixed business conditions facing their firms in March. The Electroindustry Business Confidence Index (EBCI) for current North American conditions published monthly by the National Electrical Manufacturers Association (NEMA), Rosslyn, Va., measured 60.9 points, a decline of 8.7 points from February.

However the EBCI Index for current North American conditions stood solidly on positive ground, as any reading above 50 indicates more panelists reported better conditions compared to the previous month than reported worse conditions. The decline may be due in part to concerns over disruptions emanating from events in Japan and the Middle East. Nearly 44 percent of survey panelists reported improved conditions in March, down slightly from 48 percent in February, while just under 22 percent reported conditions deteriorated.

Results for the EBCI for future North American conditions were similar to those for current conditions. While the index retreated somewhat in March, it was nonetheless at a historically high level of 82.6 points. Almost two-thirds of the panelists expect to see conditions improve during the next six months, while none of the 23 respondents anticipate deterioration.

The global EBCI indexes for future conditions were also generally bullish, but the current indexes saw some deterioration. Latin America posted declines of 10.5 points to 58.3 points and 1.9 points to 79.4 points for its current and future conditions, respectively, but both indexes were in growth territory. Europe’s EBCI for current conditions declined 7.9 points to 60 points, but its future conditions index increased 7.1 points to 82.1 points. The Asia-Pacific region showed no increase for current conditions, but a 12.1- point increase to 82.1 points for future conditions.