Rosslyn, VA, August 5, 2005 -- NEMA, the National Electrical Manufacturers Association, has released its Lighting Systems Index for the second quarter of 2005. The index increased 1.1% in the second quarter, marking the index's highest reading in four years. Although the index continues to lag the peak level it set in the closing days of the late 1990s economic boom, it has recovered nearly 8% from the trough in early 2003.

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.

According to the index, the residential construction sector remains the single-largest source of underlying demand growth for lighting equipment. Driven by still-low mortgage rates, the pace of single-family home construction continues to set new records virtually every month. Moreover, the housing market will boost lighting equipment demand for at least the next several quarters. Even though mortgage rates are expected to rise, they will remain low enough such that stronger income growth, resulting from a tightening U.S. labor market, offsets the higher costs of financing, thus keeping the housing boom alive a little longer.

To see the full index, including a graphic, visit www.nema.org/econ/lsi/upload/lighting_systems_index_0805.pdf.