Electroindustry Index Drops Slightly In June, But Still Suggests Growth

Index remained above 50 for 39th-straight month.

The Electroindustry Business Confidence Index declined overall in June, measuring at 53.6, but is still above the 50-point threshold, suggesting conditions remain favorable for growth. The latest reading marked the 39th consecutive month above the 50-point threshold.

The index showed a drop of 2.2 points from a reading of 55.8 in May. The overall index for future North American conditions, however, increased slightly from last month’s numbers, up 0.9 point to 27.8.

Business environments in each of the other world regions included in the survey were somewhat stronger. Conditions in Latin America, Europe, and the Asia/Pacific region indicated strong readings in the low 60s, while future conditions in each region reached or exceeded 50.

Respondents to the survey include NEMA-member executives’ and are asked to report their views of both current and future North American business conditions. Collectively, the NEMA-member companies represent approximately 80% of the electroindustry.

Comments from respondents regarding current conditions indicated that some continued to expect a highly favorable marketplace. Comments relative to the six-month outlook included a mix of concerns regarding economic fundamentals.

The index value is the percentage of respondents expecting “better” conditions, plus one-half of the percentage of respondents expecting “unchanged” conditions, which follows the methodology used by the Institute for Supply Management in the construction of their manufacturing index.

Source: June 2006 NEMA
Electroindustry Business Confidence Index
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