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Industry News
Current and Future Indexes Ease Back But Continue To Suggest Conditions Conducive To Expansion
July 28, 2016

NEMA's Electroindustry Business Conditions Index (EBCI) remained above 50 again in July, signaling that conditions continue to be conducive for expansion in this sector. However, the current conditions index retreated back toward the threshold point from 59.4 in June to 53.6 this month. A majority of July's respondents, 64 percent, reported conditions unchanged from a month ago, which is up substantially from the 44 percent who thought so in June. Unsurprisingly, the share of those reporting better conditions dropped from 38 percent in June to 21 percent this month, while the proportion of respondents who noted worse conditions declined as well, but only by 5 points from 19 percent last month to 14 in July.

The survey's measure of the intensity of change in electroindustry business conditions edged up from June, with the mean rating going from +0.2 previously to +0.4 this month. Panelists are asked to report intensity of change on a scale ranging from –5 (deteriorated significantly) through 0 (unchanged) to +5 (improved significantly).

The future conditions index also remained above 50, even though it softened slightly as well, easing back to 57.1 in July from 59.4 in June. A plurality of respondents see conditions unchanged in six months, with 43 percent reporting no change this month versus 31 percent in June. As with the current conditions index, a smaller share of respondents – 36 percent in July compared to 44 percent last month – expect better conditions, while those expecting worse conditions slid from 25 percent in June's survey to 21 percent this time. 

Click here for the complete July 2016 report.
 

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