Press Release Summary:
Although NEMA's Electroindustry Business Confidence Index for North American conditions rose in March, at 47.9, index still lagged 50-point threshold indicative of industry expansion. Results suggest that, while business environment facing electrical equipment manufacturers continues to weaken, pace of deterioration has slowed markedly since January. Following modest gain 1 month ago, EBCI for future North American conditions plunged 12.5 points to 33.3, its lowest reading since Nov 2006.
Original Press Release:
Current Conditions Index for North America Climbs in March, but Future Expectations Barometer Falls to Lowest Level in 16 Months
ROSSLYN, Va. , March 26, 2008- NEMA's Electroindustry Business Confidence Index (EBCI) for current North American conditions rose for a second straight month in March. Still, at 47.9, the index again lagged the 50-point threshold indicative of industry expansion. Indeed, March was the fourth consecutive month in which the index failed to top 50 points.
These results suggest that, while the business environment facing electrical equipment manufacturers continues to weaken, the pace of its deterioration has slowed markedly since January.
By contrast, survey panelists' March expectations for the coming six months saw a sharp reversal. Following a modest gain a month ago, the EBCI for future North American conditions plunged 12.5 points to 33.3, its lowest reading since November 2006.
The Electroindustry Business Confidence Index gauges the business confidence of the electroindustry in Asia, Europe, North America, and Latin America and is based on the results of a monthly survey of senior managers at NEMA member companies. Those companies represent more than 80 percent of the electroindustry.
NEMA is the trade association of choice for the electrical manufacturing industry. Founded in 1926 and headquartered near Washington, D.C., its 430 member companies manufacture products used in the generation, transmission and distribution, control, and end-use of electricity. These products are used in utility, medical imaging, industrial, commercial, institutional, and residential applications. Domestic production of electrical products sold worldwide exceeds $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing, Sao Paulo, and Mexico City.
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