In a report recently published by the National Electrical Manufacturers Association (NEMA) about the “Industrial Confidence Survey in the Electrical Industryâ€, 44% of the surveyed companies stated that the economic environment facing the electrical industry began to deteriorate in the last month. Enterprises with this view accounted for only 36% in June, and only accounted for 23% in May.
Only 8% of the companies believe that the situation is better than one month ago, a drop of 27% from May to June. 48% of the companies reported that the business situation has not changed in comparison with June.
The current EBCI (Electro industry Business Confidence Index) is therefore reduced from 45.5 one month ago to 32, and the growth threshold is below 50 points for two consecutive months.
The “Future North American Market Situation Electronics Industry Business Index†shows that this situation will improve in the next six months. 40% of the participating survey companies indicated that they think the situation will improve in early 2012, 12% of the companies think the situation will deteriorate, and in June 2011, 36% of participating survey companies think the situation will improve, while less 9% of companies expect the situation to deteriorate.
Glossary >> Electronic Industry Business Confidence Index EBCI:
The Electrical Industry Business Confidence Index (EBCI) assesses the electrical industry business confidence in Asia, Europe, North America and South America and is based on a monthly survey conducted by senior managers of NEMA member companies. These manufacturers represent more than 80% of the electrical industry's market share.
According to the relevant report of the American Electrical Manufacturers Association in August, the confidence index of North American electrical manufacturers fell significantly in July due to the economic downturn in recent months.