Construction + Economy

Electroindustry Business Confidence Improves, But Remains in Contractionary Territory

NEMA’s Electroindustry Business Confidence Index (EBCI) for current conditions gained ground for a second month in a row in February, rising to 27.3 points from 20 in January. In spite of the recent rebound, the business environment remains bleak. February’s reading was far below the “breakeven” mark of 50 points and indicates a steep and ongoing deterioration in electroindustry conditions.

ebci

The EBCI for future North American conditions was little changed for a second consecutive month. The index slipped a slight 1.1 points to 36.4 in February and has held in a tight range since December. Though far above the cyclical low of 17.5 seen in the October aftermath of Wall Street’s collapse, the index remained firmly in contractionary territory as survey panelists on balance expect business conditions to erode well into the second half of 2009.

Click here for the complete February 2009 report in PDF format.

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, according to NEMA.

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Craig DiLouie

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