ECONOMIC INDICATORS – THE LATEST UPDATES
BOATING NEWS NET is a monthly economic report produced by NMMA, which features industry and general economic indicators that impact your business.
Boating News Net reports that GDP growth slowed to 1.8% in the first quarter, primarily reflecting slowdowns in consumer spending, government spending, exports, and business investment offset by upturns in imports and inventory investment. Analysts expect growth to pick up through subsequent quarters.
Consumer confidence dropped five points in April, reflecting a downturn in consumer’s short-term outlooks, while CEO outlooks improved the first quarter, reaching a 7-year high of 67. CEOs anticipate an increase in employment levels in their industries, which represents a marked increase of 30% from a year ago.
Unemployment edged up a tenth of a percent in May, while retail sales grew for the tenth consecutive month, reaching $389 billion.
First quarter wholesale shipments of traditional powerboats were flat from a year ago, down 1.2%, with retail sales down 10 percent in the fourth quarter.
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And here are other summations from top news sources that give us more coverage and perspective.
Consumer Confidence Down in May
The consumer confidence index stands at 60.8, down from 66 in April. The Present Situation Index decreased to 39.3 from 40.2. The Expectations Index declined to 75.2 from 83.2 last month.
“A more pessimistic outlook is the primary reason for this month’s decline in consumer confidence,” said Lynn Franco, director of The Conference Board Consumer Research Center, in a statement.
“Consumers are considerably more apprehensive about future business and labor market conditions, as well as their income prospects. Inflation concerns, which had eased last month, have picked up once again. On the other hand, consumers’ assessment of current conditions declined only modestly, suggesting no significant pickup or deterioration in the pace of growth.”
Those who said business conditions are “good” decreased to 14.6 percent from 15.5 percent, and those who said business conditions are “bad” increased to 37.1 percent from 35.9 percent. Consumers’ appraisal of the labor market was also less favorable than it was last month. Those who said jobs are “hard to get” increased to 43.9 percent from 42.4 percent, and those who said jobs are “plentiful” increased to 5.6 percent from 5.1 percent.
Consumers’ short-term outlook, which had improved marginally in April, turned pessimistic in May. The proportion of consumers who expect business conditions to improve during the next six months declined to 17 percent from 19.2 percent. Those who anticipate that business conditions will worsen increased to 15.5 percent from 14 percent.
Poll: Consumers Less Likely to Buy a Boat
Reprinted from Trade Only on 06 June 2011
Americans continue to describe the economy as bad and their aversion to large purchases and non-essential spending supports this perspective, according to a recent Harris Poll.
The poll asked about boat purchases. Six percent of respondents said they were likely to buy a boat or RV, down from 7 percent in January. Two percent of those polled said they were very likely to buy a boat or RV, and 89 percent said they were not likely to do so.
The poll surveyed 2,184 adults online from May 9-16.
Click here for the full poll results.