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Posted On: 11/27/2005

NEMA lighting index hits highest mark in four years

The NEMA Lighting Systems Index increased 2.4 percent in the third quarter of 2005, as the index climbed to its highest mark in more than four years. While the index has yet to return to the levels seen at the end of the prior economic expansion, it has risen more than 8 percent from the trough in early 2003. 

Homebuilding activity continues to bolster demand for lighting equipment. Despite steadily rising mortgage rates, which recently hit three-year highs, the pace of single-family home construction remains very strong. Moreover, the housing market should boost lighting equipment demand over the very near term, particularly as hurricane-related reconstruction activity picks up in earnest along the Gulf Coast. As mortgage rates continue to creep higher, however, the residential construction sector is expected to put a damper on sales of lighting systems.

Although still performing below previous expectations, the nonresidential construction sector has slowly begun to bolster demand for lighting equipment. Given the anticipated slowdown in homebuilding, this expected future expansion in commercial and industrial construction activity would likely provide some prospects for growth in lighting equipment demand.

To see the full index, including a graphic, visit http://www.nema.org/econ/lsi/upload/lighting-systems-index-2005-11.pdf.

The NEMA Lighting Systems Index is a composite measure of NEMA member companies' U.S. shipments of a variety of lighting products, including lamps, luminaires, ballasts, emergency lighting, and exit signs, and is designed to track underlying demand for these types of equipment. Product shipments data are drawn from statistical surveys conducted regularly by NEMA and are adjusted for inflation and regularly recurring seasonal fluctuations.
  
NEMA is the leading trade association in the United States representing the interests of electroindustry manufacturers.  Founded in 1926 and headquartered near Washington, D.C., its 400 member companies manufacture products used in the generation, transmission and distribution, control, and end-use of electricity.  Domestic shipments of electrical products within the NEMA scope exceed $100 billion.