Electrical manufacturers remain generally optimistic about future business conditions, according the Electroindustry Business Confidence Index (EBCI), a monthly survey of senior managers at member companies of the National Electrical Manufacturers Association (NEMA), Washington, D.C.

October's EBCI results mark the third consecutive month in which the current conditions index remained above 50 (the threshold indicating conditions are favorable for growth) in the North America, Europe, and Asia/Pacific regions. Confidence in current conditions was lowest in Europe, at 43.8 points.

Manufacturers were most optimistic about future conditions in Latin America, where the EBCI moved up nearly 10 points from its September value to reach 72 points in October. Although all four regional indexes for future business conditions remained above 50, the values for North America, Europe, and Asia/Pacific declined from their September levels.

Some respondents described the improvement in current conditions as slow, but indicated that even though not necessarily robust, the trend is positive nevertheless. Said one respondent, “Things are definitely better than six months ago. However, several important segments are still very weak — commercial construction, retail construction and retrofit.”

“Although the road contains several speed bumps, the trend is positive,” added another manufacturer.

The uniformly positive index numbers for future conditions seem to be largely based on a sense of improvement relative to the bottom of the trough.

The economic stimulus provided by U.S. monetary and tax policy received some plaudits from the panel, along with the hope that its effects will translate into global growth and concern that the economy, generally, and manufacturing, in particular, will continue to reap the benefits of those policies once the initial jolt has faded.

Want to use this article? Click here for options!
© 2007 Penton Media, Inc.