ECONOMIC INDICATORS - THE LATEST UPDATES

U.S. Economic Indicators

+ GDP
According to initial estimates, the economy grew 2% in the third quarter, mostly reflecting gains in defense spending and consumer spending on cars and other durables. Declines in farm inventory investment, residual effects of the Midwest drought, along with decreases in business investment and exports continue to offset growth. Personal savings rate fell to 3.7% in the third quarter while disposable income continued to rise steadily, up 1.9% in September. (Source: Bureau of Economic Analysis)

+ CONSUMER CONFIDENCE INDEX
Consumer confidence hit a 3½-year high in October rising to 72.2, primarily reflecting a huge improvement in consumer sentiments of current conditions due to more positive assessments on the labor market. Similarly, the University of Michigan Consumer Sentiment Index posted a 5-year high reading in October at 82.6. (Source: Conference Board)

- CEO CONFIDENCE INDEX
CEO confidence fell for the second consecutive quarter, dropping to 42 in quarter 3. CEOs interviewed from mid-August through mid-September reported increased pessimism regarding both current conditions and short-term outlooks, citing uncertainty around spending and tax cuts set to change at the end of 2012. Compared to a year ago, more CEOs have cut back on spending plans due to declines in sales volume. The Business Roundtable’s CEO Economic Outlook Index similarly dropped in the third quarter. (Source: The Conference Board)

- UNEMPLOYMENT RATE
The unemployment rate stayed below 8% for the second consecutive month with 171,000 nonfarm jobs added to payrolls in October. The labor force participation rate edged up and the number of discouraged workers edged down, suggesting an improved job market due to the fact that more hopefuls were looking for work. (Source: Bureau of Labor Statistics)

-RETAIL SALES
Retail sales continued to post large gains in September, up 1.1% from a year ago, totaling $413B. The 1.2% gain in August was the best showing in nearly two years. The National Retail Federation anticipates sales from this year’s holiday season to grow at a slower pace than last year’s. (Source: U.S. Census Bureau)

- PURCHASING MANAGERS INDEX
he PMI inched upward in October to 51.7 as new orders and production turned up. The economic environment in Europe, slowdown in capital expenditures in the global market, and the fiscal cliff remain concerns for supply executives. A PMI greater than 50 indicates the economy is generally expanding. (Source: Institute for Supply Management)

+ FEDERAL FUNDS RATE
During its last meeting in October, the FOMC reaffirmed its policy stance from the September meeting. The Fed will continue to buy mortgage bonds to support the economy until the labor market outlook improves substantially. The Federal Funds rate is expected to stay at 0-0.25% until at least mid-2015 to stimulate borrowing and investment. The current inflation rate is 1.99% and the FOMC expects long-term inflation rates to remain stable. (Source: Federal Reserve)

- HOUSING
Home prices continued to rise in August, up 1.8% on the 20-city composite. Existing single-family home sales edged down 2% in September but still represented the second highest reading this year. New housing starts surged 15% to 872,000 in September while new home sales rose 6% to a 2½-year high 389,000. (Source: National Association of Realtors, U.S. Census Bureau)

+ AUTO SALES
Light vehicle sales totaled 1.1M in October, up 7% from a year ago. After adjusting for seasonal factors, annualized light vehicles sales totaled 14.3M. Automakers expect a boost in upcoming sales from vehicles damaged in the wake of Superstorm Sandy. (Source: Autodata Corp.)

Boat Manufacturers Economic Indicators

+ WHOLESALE SALES
Advance data indicates that year-to-date wholesale shipments of traditional powerboats for NMMA's core control group of manufacturers were up 8 percent through July compared to a year ago. (Source: NMMA Dashboard)

+ RETAIL SALES
New powerboat registrations were up 7% on a rolling 12-month basis through June, compared to a year ago with overall growth posted across all regions led by the Great Lakes states (up 12%) which accounted for nearly 1 of 5 new powerboats sold. Advance estimates indicate sales will be up 10.2% on a rolling twelve-month basis through September. (Source: NMMA New Powerboat Registrations Report, Info-Link)

+ TRADE
Recreational boat and marine engine export dollars were down 11% in the third quarter while volumes were down 1% compared to a year ago. Year-to-date, dollars were down 3% while units were up 7%. Import volumes and grew 3% in quarter 3 while dollars fell 5%. Year-to-date, import dollars were up 10% while units were down 6%. (Source: NMMA Export/Import Abstract)

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