Press Release Summary:
After 6 months of scoring 50 or higher, NEMA's Electroindustry Business Conditions Index dropped to 47.1 in September, suggesting that current conditions are no longer conducive for expansion in the electrical manufacturing sector. Only 24% of respondents reported better conditions versus 33% last month. Share of respondents reporting worse conditions nearly doubled from 17% in August to 29% this month, while proportion of panel members who noted unchanged conditions showed little movement.
Original Press Release:
Driven by Uncertain Monetary Policy and Political Climate, Current Conditions Index Drops below 50
ROSSLYN, Va.—The six month run of NEMA’s Electroindustry Business Conditions Index (EBCI) scoring 50 or higher has ended with September’s result of 47.1. Dropping below 50 suggests that current conditions are no longer conducive for expansion in the electrical manufacturing sector. Only 24 percent of respondents reported better conditions in September, versus 33 percent last month. The share of respondents reporting worse conditions nearly doubled from 17 percent in August to 29 percent this month, while the proportion of panel members who noted unchanged conditions showed little movement—47 percent this time compared to 50 percent last month.
The survey’s measure of the intensity of change in electroindustry business conditions edged into negative territory, as the mean rating slid from +0.2 in August to -0.2 in September. Panelists are asked to report intensity of change on a scale ranging from –5 (deteriorated significantly) through 0 (unchanged) to +5 (improved significantly).
The future conditions index, although still in the range indicative of expansion, dropped considerably from 66.7 in August to 52.9 this month. Mirroring the current conditions responses, 47 percent now expect conditions to remain unchanged in six months, compared to 33 percent in August. The share of respondents expecting better conditions has eroded to 29 percent in this month’s survey versus 50 percent last month, and 24 percent of September’s respondents foresee worse conditions in six months, up from 17 percent in August.
Click here for the complete September 2016 report.
The National Electrical Manufacturers Association (NEMA) represents nearly 400 electrical, medical imaging, and radiation therapy manufacturers at the forefront of electrical safety, reliability, resilience, efficiency, and energy security. Our combined industries account for more than 400,000 American jobs and more than 7,000 facilities across the United States. Domestic production exceeds $117 billion per year.
National Electrical Manufacturers Association