ROSSLYN, VA, October 25, 2006-The National Electrical Manufacturers Association's (NEMA) Electroindustry Business Confidence Index (EBCI) for current North American conditions rebounded in October following five consecutive monthly declines. While the index, at 44 points, again fell short of the 50-point threshold that is indicative of sectoral expansion, these latest results suggest that the rate of deterioration in business conditions slowed appreciably during October relative to the prior month.
The North American future conditions index, a gauge of executives' expectations for conditions six months forward, also remained below 50, but extended its rebound to a second straight month. The index rose more than nine points to 35.4 in October, and sits more than 18 points above August's low watermark.
Current conditions EBCIs for each of the other three world regions included in the survey all declined in October, but remained well above the critical 50-point mark. The Latin American and Europe indicators both slipped modestly to 60 and 70.8, respectively, while the Asia/Pacific index slid nearly eight points to a level of 60. The future conditions index for Latin America rose to 60.7 from 53.6 a month ago, but indicators for Europe and the Asia/Pacific region were off from a month ago at 50 and 66.7, respectively.
For a complete summary of the October 2006 index, including charts and a list of participating companies, go to http://www.nema.org/econ/ebci/upload/EBCI%20results%2020061025.pdf
The EBCI (http://www.nema.org/econ/ebci/index.cfm) 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, São Paulo, and Mexico City.