North American Electrical Market Conditions Sag in December

The National Electrical Manufacturers Assn.’s (NEMA) monthly indicator of North American business conditions declined for the second month in a row in December.


The National Electrical Manufacturers Assn.’s (NEMA) monthly indicator of North American business conditions declined for the second month in a row in December. The Electroindustry Business Confidence Index (EBCI) for North American conditions dropped to 30 points from 39.6 points a month ago, and trailed the 50-point threshold indicative of industry expansion for a fifth straight month.

In contrast, the EBCI for future North American conditions, a measure of executives’ expectations for conditions six months ahead, climbed nearly 15 points in December to 48 points. Although still slightly below the critical 50-point barrier, December’s reading brought the index to its highest level since April. Meanwhile, each of the six EBCIs for the other world regions included in the survey reached or exceeded the 50-point growth threshold in December, with five of the six indices climbing from a month earlier.

For a complete summary of the December 2006 index, including charts and a list of participating companies, click here.

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