NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions jumped nearly 12 points to 53.3 in August, an indication that the business environment facing electrical equipment manufacturers improved during the month.
A companion measure of the intensity of change in business conditions gave slightly less auspicious results. The intensity of change indicator rose to 0.0 on the month, suggesting conditions were essentially unchanged in August compared to July. Intensity of change in business conditions is measured on a scale ranging from –5 (deteriorated significantly) through 0 (unchanged) to +5 (improved significantly).
Meanwhile, the North American future conditions EBCI also climbed in August, rising 1.7 points to 68.3. This marked the highest reading for the future conditions index since August 2005 and implies that a significant proportion of industry executives expect at least some degree of improvement in the business situation within the next six months.
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.