The results from NEMA’s latest monthly survey of senior member company executives finds that business conditions improved for the sixth month in a row in April.
Nearly 30 percent of survey panelists reported improved conditions in April, down appreciably from almost 44 percent in March. At the same time, though, only about 14 percent of panelists reported conditions deteriorated, down from almost 22 percent previously. The balance of panelists—57 percent—reported conditions were unchanged in April.
The EBCI for future North American conditions increased in April, climbing to 85.7 from 82.6 in March. More than 71 percent of panelists expect conditions will improve during the next six months, while none of the 21 respondents anticipate deterioration during that time period.
EBCI Construction Description
The EBCI indexes are based on the results of a monthly survey of senior managers at NEMA member companies and are designed to gauge the business confidence of the electroindustry in key world regions. The survey contains the following questions:
- How would you rate current economic conditions in the following regions, as they affect your business, compared to the previous month?
Using the following scale, please describe the magnitude of change in economic conditions in North America this month compared to economic conditions last month:
5 (improved significantly),
4, 3, 2, 1, 0 (stayed the same),
-1, -2, -3, -4, -5 (deteriorated significantly)
- How do you expect economic conditions in the following regions, as they affect your business, to have changed six months from now?
Respondents are asked to indicate whether conditions are better, worse or unchanged (or not available if their respective companies do not do business in a particular region: North America (Canada and the United States), Latin America (Mexico, Central America and South America), Europe and Asia/Pacific. The survey also provides space for respondents to comment on current conditions.
The index value is the percentage of respondents expecting “better” conditions, plus one-half of the percentage of respondents expecting “unchanged” conditions, which follows the methodology used by the Institute for Supply Management (formerly the National Association of Purchasing Management) in the construction of their manufacturing index.