The National Electrical Manufacturers Association's (NEMA) Motors Shipments Index declined for the second consecutive quarter during the first three months of 2009, falling more than 9% versus 4Q 2008 and 23.4% on a year-over-year basis. Since hitting its peak during the first half of 2006, the index has dropped more than 27%, NEMA said, with most of the declines occurring during the last two quarters. Fractional and integral horsepower motors both saw market demand weaken, according to NEMA, but the decline in fractional units was appreciably weaker compared to 1Q 2008.
According to NEMA, “with companies in the midst of slashing capital spending outlays due to tight credit conditions and declining profits, as well as manufacturers cutting factory utilization rates to their lowest levels on record, the near-term outlook is quite unfavorable for domestic industrial equipment and machinery demand. Thus, NEMA/BIS expects the Motors Shipments Index will likely see further downward pressure for the next several quarters.”
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