This issue's Regulatory Report

Industry Report

Blue Chip Economists Hold Forecasts Steady After revising forecasts for growth in the U.S. economy sharply down last month, economists surveyed for Blue Chip Economic Indicator newsletter in early June held their forecasts essentially steady. Though both the calendar year and fourth quarter-over-fourth quarter forecasts of real growth in gross domestic product rose 0.1 points compared to last month's forecasts, Blue Chip Executive Editor Randall Moore characterized the changes as "tweaking." Reports of stronger growth in April have been offset by preliminary reports of a downturn in such indicators as retail sales and employment growth in May. The consensus forecasts call for real GDP growth of 3.2% in the second quarter and 3.3% for both the third and fourth quarters. Despite the slowing of growth in the U.S. economy, the consensus of economists expects the Federal Reserve's Open Market Committee to raise interest rates another quarter point in its meeting in late June.

NRA's Restaurant Performance Index Edges Higher In April
The Restaurant Performance Index fielded by the National Restaurant Association showed a small gain of 0.1 point in April, as current improvements in customer traffic and sales offset a slight decline in the Expectations Index. The Current Situations Index rose 0.3 points while the Expectations Index, with all four of its components flat or negative, was off 0.2 points.

The customer traffic indicator, part of the Current Situations Index, rose 0.7 points in April. Sales-store sales were up 0.1 point.

In the Expectations Index, the indicator for future business conditions was off half a point; that for staffing was down 0.3 points.

The capital expenditures indicator in the Current Situation Index rose 0.3 points reflecting activity during the past three months. Expected capital expenditures during the next six months were flat.

While the overall Performance Index essentially has held steady during the past three months at 102.1 or 102.2, those scores signify continued growth. Scores above 100 signal growth; below 100, contraction. The Expectations Index at 103.0 also bodes well for continued growth.