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March North American EBCIs Point to Continued Growth, but Reflect Increased Caution

Apr 13, 2011 4:20 PM

Senior executives at NEMA member companies reported that, on balance, business conditions facing their firms improved for a fifth consecutive month in March. The Electroindustry Business Confidence Index (EBCI) for current North American conditions measured 60.9. Any reading above 50 indicates more panelists reported better conditions compared to the previous month than reported worse conditions.

At the same time, concerns over disruptions emanating from events in Japan and the Middle East contributed to a decline in the level of the index from 69.6 a month ago. The survey’s measure of the intensity of change in current North American conditions also slipped in March, declining to +0.3 from +0.6 in February. Panelists are asked to report intensity of change on a scale ranging from –5 (deteriorated significantly) through 0 (unchanged) to +5 (improved significantly).

Results for the EBCI for future North American conditions were similar to those for current conditions. While the index retreated somewhat in March, it was nonetheless at a historically high level at 82.6.

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