ECONOMIC INDICATORS – THE LATEST UPDATES
The NMMA’s monthly Boating News Net – Monthly Economic Report features a summary overview of various indicators. The June 9, 2010 edition included a variety of updates.
The consumer confidence index posted growth for the third consecutive month (see The Conference Board Consumer Confidence Index® article below), while CEO confidence dropped two points from the previous reporting quarter. Some 431,000 jobs were added in May, though 95% were temporary government hiring for the Census. Retail sales spiked for the seventh month in April. Single-family home sales also jumped 7% in April, while new housing starts climbed six percent reaching a 17-month high. Auto sales in the light vehicle sector rose 20% from one year ago through April.
Wholesale shipment of powerboats were up 21% in units, while sterndrive, fiberglass outboard and ski boats rose between 29% to 40% from record lows a year ago. PWC, inflatable boat and sailboat wholesale shipments reported to continue a downward trend.
CLICK HERE to read the complete June 2010 issue of NMMA’s Boating News Net. (Passcode is required for access – contact Jonathan Banks for information)
The Conference Board Consumer Confidence Index® Drops Sharply
Published 29 June, 2010
The Conference Board Consumer Confidence Index® which had been on the rise for three consecutive months, declined sharply in June. The Index now stands at 52.9 (1985=100), down from 62.7 in May. The Present Situation Index decreased to 25.5 from 29.8. The Expectations Index declined to 71.2 from 84.6 last month.
The Consumer Confidence Survey® is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is the world’s largest custom research company. The cutoff date for June’s preliminary results was June 22nd.
Says Lynn Franco, Director of The Conference Board Consumer Research Center: “Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June. Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence. Until the pace of job growth picks up, consumer confidence is not likely to pick up.”
Consumers’ appraisal of present-day conditions was less favorable in June. Those saying conditions are “good” decreased to 8.0 percent from 9.7 percent, while those saying business conditions are “bad” increased to 42.4 percent from 39.5 percent. Consumers’ assessment of the labor market was also less favorable. Those claiming jobs are “hard to get” increased to 44.8 percent from 43.9 percent, while those saying jobs are “plentiful” decreased to 4.3 percent from 4.6 percent.
Consumers’ short-term outlook, which had improved significantly last month, turned more pessimistic in June. Those anticipating an improvement in business conditions over the next six months decreased to 17.2 percent from 22.8 percent, while those expecting conditions will worsen rose to 14.9 percent from 11.9 percent.
Consumers were also much less optimistic about future job prospects. The percentage of consumers anticipating more jobs in the months ahead decreased to 16.0 percent from 20.2 percent, while those anticipating fewer jobs increased to 20.8 percent from 17.8 percent. The proportion of consumers anticipating an increase in their incomes declined to 10.6 percent from 11.4 percent.
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