Rotor eccentricity in permanent magnet (PM) motors produces a voltage imbalance between parallel circuits that then creates a circulating current. This circulating current causes conduction loss, which is one of the stray losses in motors. The conduction losses of circulating currents need to be reduced in order to make PM more highly efficient. This paper describes the effect of neutral point connections on circulating current caused by static rotor eccentricity in a PM motor, as the circulating current depends on the use of neutral point connections in stator windings. We developed a theoretical expression for a circulating current with a closed circuit and compared its validity with that of measured results. The results of how well the connections of neutral points reduced the circulating current loss are provided.