by Bill McBride on 8/31/2015 01:45:00 PM
Monday, August 31, 2015
Here is a minor indicator I follow from the National Restaurant Association: Stronger sales, traffic in July boost RPI
Driven by stronger same-store sales and customer traffic levels, the National Restaurant Association’s Restaurant Performance Index (RPI) posted a solid gain in July.Click on graph for larger image.
The RPI stood at 102.7 in July, up 0.7 percent from June and the first gain in three months. In addition, July represented the 29th consecutive month in which the RPI stood above 100, which signifies expansion in the index of key industry indicators.
“July’s RPI gain was fueled primarily by an improvement in the current situation indicators,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Although a solid majority of operators reported higher same-store sales and customer traffic levels in July, their outlook for both sales growth and the economy is more cautious compared to recent months.”
The index increased to 102.7 in July, up from 102.0 in June. (above 100 indicates expansion).
Restaurant spending is discretionary, so even though this is "D-list" data, I like to check it every month. Even with the decline in the index, this is a solid reading.
It appears restaurants are benefiting from lower gasoline prices.
Posted by Bill McBride on 8/31/2015 01:45:00 PM