Foodservice Equipment Reports

Consumer Sentiment, Retail Foodservice Sales Dip In June

The Thomson Reuters/University of Michigan Consumer Sentiment Index ticked down slightly in the preliminary July reading released July 18. The U.S. Census Bureau also said July 15 that sales at foodservice and drinking places fell slightly in June, on a seasonally adjusted basis. Both data points are reminders that consumer confidence and spending remain weak, in spite of record equity prices and strong jobs growth in recent months.

The UM Sentiment Index dropped to 81.2 from 82.5 in the final June reading. The research group’s Expectations Index fell for the third consecutive month while its Current Conditions Index rose slightly.

Richard Curtin, UM Surveys of Consumers chief economist, noted the stability of the Sentiment Index in recent months. “The remarkable aspect of recent trends in consumer confidence has been its resistance to change in either direction” in spite of economic news, he was cited as saying by Reuters. “This stability will provide the necessary strength for consumer spending to continue to expand, but does not support an acceleration in spending above 2.5%.”

The Advance Report on retail and foodservice sales from the Census Bureau charted a 0.3% decline in foodservice sales in June. The Bureau did upwardly revise May sales, however, to a 0.9% gain. Foodservice and drinking place sales stand 5.6% above June 2013. 

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