Motors Index Falls in 2Q Aug 17, 2009

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NEMA’s Motors Shipments Index declined for the third quarter in a row during 2Q 2009, contracting 10.5% compared to the first three months of this year and nearly 25% versus 2Q 2008. After climbing sharply to a cyclical peak in 2006 and remaining at a high level through mid-2008, NEMA said the index has plunged 28% in the past nine months and is now at its lowest level since the beginning of 2005. Demand for both fractional and integral horsepower motors weakened, with both categories registered large year-over-year declines in shipments.

NEMA said that replacement demand for industrial equipment and machinery, such as motors, will be weak even once production activity resumes since a record share of operable capacity is currently not in use. As a result, NEMA expects the Motors Shipments Index will decline through the end of this year before it beginning what should be a tepid rebound.

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