Construction + Economy

Business Conditions Lose Steam in June But Six Month Outlook Remains Solid

NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions slipped to 45.5 in June, dropping below the 50-point “growth threshold” for the first time since October 2010. The index had climbed as high as 69.6 as recently as February 2011, prior to a sharp run-up in oil prices and Japan’s earthquake and tsunami.

The survey’s measure of the degree of change in current North American conditions also edged lower in June, declining to 0.0 from +0.1 in May. Panelists are asked to report intensity of change on a scale ranging from –5 (deteriorated significantly) through 0 (unchanged) to +5 (improved significantly).

The EBCI for future North American conditions topped the 50-point mark for a 28th consecutive month in June. The index measured 63.6 for the month, down from 81.8 in May.

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Craig DiLouie

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