Now that concerns over the SARS virus have abated and uncertainty regarding U.S. intentions in Iraq has diminished, the global economy may finally be in expansion mode.

With the exception of Europe, the NEMA Electroindustry Business Confidence Index (EBCI) for current conditions in the electrical industry was above 50 in all regions in August. Meanwhile, the index of conditions six months from now was above 50 in all four regions. An index reading of 50 or higher suggests conditions are in place for expansion in the electrical industry.

Still, respondents to the EBCI echoed cautious optimism. As one manufacturer wrote: “I do not foresee any dramatic upturn in business. All indications from customers across markets suggest a very gradual improvement beginning later this year…”