by Bill McBride on 12/30/2011 11:39:00 AM
Friday, December 30, 2011
From the National Restaurant Association: Restaurant Industry Outlook Improved in November as Restaurant Performance Index Rose to Five-Month High
The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.6 in November, up 0.6 percent from October. In addition, November represented the second time in the last three months that the RPI stood above 100, which signifies expansion in the index of key industry indicators.Click on graph for larger image.
“The November increase in the Restaurant Performance Index was fueled by broad-based gains in both the current situation and forward-looking indicators,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Restaurant operators reported their strongest net positive same-store sales results in more than four years, while customer traffic levels also grew in November.”
Restaurant operators reported positive same-store sales for the sixth consecutive month inNovember. ... Restaurant operators also reported stronger customer traffic levels in November. ... Capital spending activity among restaurant operators trended upward in recent months. Forty-six percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, the highest level in five months.
The index increased to 100.6 in November (above 100 indicates expansion).
Unfortunately the data for this index only goes back to 2002.
Restaurant spending is discretionary and is impacted by the overall economy. This index showed contraction in July and August, but is now positive again.
Posted by Bill McBride on 12/30/2011 11:39:00 AM