Research

Economic pick-me-up?
Pickup truck sales were up by 50 percent year-over-year in May at AutoNation, the country’s largest auto retailer. The company’s Chairman and CEO Mike Jackson calls this statistic a sign of strength for small business, according to a CNBC report.

“I’ve always said, when you want to know when this economy is going to turn, just watch the pickup sales,” Jackson said. “All those sales are small businesses and entrepreneurs, and when they see the prospect for better business, they’re going to go out and finally buy a new pickup truck. So this is a key indicator of what’s going on in the U.S. economy.  This is small-business America saying that ‘The worst is over, I see opportunities in the future, I feel confident enough to go out and buy a new truck.”    
 

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Confidence creeping up
The Consumer Confidence Index continues to climb. It stood at 63.3 in May – its third consecutive monthly gain. 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 research firm TNS.

“Consumer confidence posted its third consecutive monthly gain, and although still weak by historical levels, appears to be gaining some traction,” says Lynn Franco, director of The Conference Board Consumer Research Center. “Consumers’ apprehension about current business conditions and the job market continues to slowly dissipate. Consumers’ expectations, on the other hand, have increased sharply over the past three months, propelling the Expectations Index to pre-recession levels (August 2007, 89.2). The improvement has been fueled primarily by growing optimism about business and labor market conditions. Income expectations, however, remain downbeat.”

Consumers’ assessment of current-day conditions continued to improve in May. Those saying conditions are “good” increased to 10 percent from 8.9 percent, while those saying business conditions are “bad” declined to 39.3 percent from 40 percent. Consumers’ appraisal of the labor market was also more positive. Those claiming jobs are “hard to get” decreased to 43.6 percent from 44.8 percent.

Consumers’ optimism about the short-term future was significantly better in May. The percentage of consumers expecting business conditions will improve over the next six months increased to 23.5 percent from 19.7 percent, while those expecting conditions will worsen declined to 11.5 percent from 12.4 percent.