Business Information Services
March 2015 NEMA Electroindustry
Business Conditions Index
March 25, 2015
Little Change in NEMA’s Business Conditions Indexes
between February and March
NEMA’s Electroindustry Business
Conditions Index (EBCI) for current
conditions in North America was
largely steady for a third straight month
in March. The index inched up to 58.3
from 57.9 in February and 57.5 in
January. One-third of March’s panelists
stated conditions improved during the
month, 17% indicated they worsened,
and 50% claimed they were unchanged.
These proportions were broadly similar
to those reported in both January and
February.
The survey’s measure of the mean
degree of change in current North
American conditions firmed in March,
climbing to +0.3 from +0.2 a month
ago. Panelists are asked to report
intensity of change on a scale ranging
from –5 (deteriorated significantly)
through 0 (unchanged) to +5 (improved
significantly).
Meanwhile, the EBCI for future North American conditions slipped modestly in March.
The index retreated to 75 from 78.9 a month ago, but remained firmly above January’s
reading of 67.5. Sixty-one percent of March’s panelists expect the business environment
to improve over the next six months compared to 11% who expect it to decline. Another
28% of panelists expect conditions to remain largely unchanged.
SURVEY RESULTS:
Current
Conditions
(Compared to
Previous Month)
Conditions Six
Months From Now
(Compared to
Current Conditions)
58.3
75.0
% Better
33%
61%
% Worse
17%
11%
% Unchanged
50%
28%
EBCI
Number of Respondents =18
Values reflect the percentage of respondents expecting "Better" conditions, plus one-half of the percentage of respondents expecting
"Unchanged" conditions.
A score of 50 or higher suggests conditions appropriate to expansion of the electroindustry sector.
EBCI METHODOLOGY:
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 environment of the
electroindustry in North America (defined here as the United States and Canada).
The survey contains the following questions:
1.
2.
How would you rate current economic conditions in North America, as they
affect your business, compared to the previous month?
a. Using the following scale, please describe the magnitude of change in
economic conditions in North America this month compared to economic
conditions last month? [Scale structured as follows: 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 North America, as they affect
your business, to have changed six months from now?
Respondents are asked to indicate whether conditions are better, worse or unchanged.
The survey also provides space for respondents to comment on current conditions. These
comments are included below the table containing the index levels.
The index value is the percentage of respondents expecting “Better” conditions, plus onehalf 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.
Copyright © 2015 NEMA Business Information Services
March 2015
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