Rosslyn, VA, June 7, 2005 -- The NEMA Lighting Systems Index increased 1.4% in the first quarter of 2005, partially regaining the declines that occurred in the two prior quarters. Although the index remains well below its peak reached at the end of the late 1990s economic boom, it increased 2.1% from a year ago and has also regained more than 6% from the trough in early 2003.
Construction activity continues to provide strong underlying support for lighting equipment demand. For example, the housing market boom persists as low mortgage rates foster a record pace of construction for new single-family homes. Moreover, while mortgage rates are expected to rise, they will remain very low by historical standards, providing builders the incentive necessary to construct more houses.
Meanwhile, private nonresidential construction activity is in the very early stages of recovery. However, any growth represents a significant shift from the sharp downturn in construction volume that occurred between 2001 and early 2004, and should therefore prop up demand for lighting equipment going forward.
The NEMA Lighting Systems Index is a composite measure of NEMA member companies'' U.S. shipments of a variety of lighting products, including lamps, luminaires, ballasts, emergency lighting, and exit signs, and is designed to track underlying demand for these types of equipment. Product shipments data are drawn from statistical surveys conducted regularly by NEMA and are adjusted for inflation and regularly recurring seasonal fluctuations.