The low Q2 EBI score was due to a drop in oil prices and instability caused by world events
Engineering business is slowing, but remains positive, according to the Engineering Business Index (EBI)—a score based on business performance and projections of engineering firms that develop transportation, water, energy, and industrial infrastructure in both public and private facilities. The EBI dipped 3.8 points from 64.0 in the first quarter to 60.2 in the second quarter, having peaked in Q2 2014 with a score of 68.9.
The Q2 2016 score, the lowest since the EBI’s launch in January 2014, was due to a drop in oil prices and instability caused by world events, such as Britain’s exit from the European Union and the upcoming U.S. presidential election.
Engineering business is still expanding, since an EBI score above 50 indicates growth. Compared with Q1, engineers were more confident that their firms would be profitable over both the next six months and the next three years. Also, respondents said that their backlogs continue to grow, but the pace is slowing.
Conducted from June 15 to July 1, the Q2 EBI survey polled 380 engineering firm leaders in the U.S. The EBI is produced by the American Council of Engineering Companies and FMI Corp.