Press Release Summary:
NEMA's Electroindustry Business Confidence Index (EBCI) for current North American conditions slid for a second month in a row in August. The EBCI dropped to 39.1 while the measure of the mean degree of change in conditions slipped to -0.4. Providing cause for optimism, the 6-month outlook topped the break-even threshold of 50 for the 4th straight month, at 54.3.
Original Press Release:
Current Conditions EBCI Down Again in August; Future Indicator Continues to Signal Growth
(ROSSLYN, Va.) - NEMA's Electroindustry Business Confidence Index (EBCI) for current North American conditions slid for a second month in a row in August, dropping to 39.1. A reading of less than 50 is indicative of contractionary conditions. Moreover, the survey's measure of the mean degree of change in North American business conditions slipped to -0.4 from -0.3 in July (on a scale ranging from -5 [deteriorated significantly] through 0 [stayed the same] to +5 [improved significantly]). As recently as June, the mean degree of change was in positive territory at +0.1.
The six-month outlook, on the other hand, continued to provide some cause for optimism. Although the future conditions index for North America retreated slightly from July, it topped the "break-even" threshold of 50 for a fourth straight month at a solid 54.3.
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.