June Restaurant Index Highest Since August 2007
1. The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 100.5 in June – up a solid 1.4 percent from May’s level of 99.2 (see chart above). The Current Situation Index has been above 100 in three of the last four months, which signifies expansion in the current situation indicators.
2. The Current Situation Index in June was at the highest level since August 2007, almost five years ago.
3. The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 100.7 in June – up slightly from May’s level of 100.6. June represented the 11th consecutive month above 100 for the Expectations Index, and the modest improvement came on the heels of three consecutive monthly declines.
5 Comments:
and PCE dropped for the 3rd straight month while the PMI index came in barely positive and with negative future orders.
not sure what to make of the restaurant index, but the rest of the economic data sure seems to be pretty poor.
also:
it looks like expectations have been dropping all year.
what's the lag like in this series?
The Heat! For most of the mid section of the country record breaking temps are keeping people indoors... summer outings (picnics, etc.) just way too miserable... so why heat up the house even more... go to a restaurant!!
A much longer term chart using the same index shows a quite different picture:
http://www.nowandfutures.com/images/restaurant_index.png
so we're headed to a recession and spending is supposedly down, but restaurants are booming? How ironic that the facts get in the way of the gloom.
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