News

Posted On: 07/31/2008

NEMA Business Confidence Index weakens in July

PlantServices.com

NEMA’s Electroindustry Business Confidence Index (EBCI) for North American conditions fell for a second straight month in July, declining by more than 4 points to 33.3. The index has spent 13 of the last 15 months at or below 50 points, signaling an extended period of weak business conditions. The survey’s measure of the mean intensity of change in current conditions also declined in July, falling to -0.7 from -0.3 in June (on a scale ranging from –5 [deteriorated significantly] through 0 to +5 [improved significantly]).

The EBCI for future North American conditions reversed a short string of gains in July, dropping more than six points to 31.25. Though still in excess of April’s 19-month low of 29.5, the index continues to anticipate contraction in the sector during the next half year.

Business confidence indexes for the other three world regions included in the survey all dropped in July relative to June. See www.nema.org/econ/ebci/index.cfm for the complete July 2008 report.

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% of the electroindustry.