Restaurant Index Reaches 6-Year High in December Current Situation Index Is Highest in 7 Years
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 102.1 in December – up a solid 1.9 percent from November and its strongest level in seven years (see chart above).
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 102.3 in December – up 1.3 percent from November and its highest level in a year. In addition, December marked the fourth consecutive month that the Expectations Index stood above 100, which represents a positive outlook among restaurant operators for business conditions in the months ahead."
MP: All three indexes: the current situation index, the expectations index, and the overall performance index are now at levels above pre-recession levels, and the current situation is at the highest level in seven years. The rebound in the performance of America's restaurants in recent months to levels not seen since 2005-2007 shows that there are some underlying strengths in the U.S. economy. Based on the elevated level for the expectations index, we can expect continued improvements for the restaurant industry in 2012.