NRA’s Performance Index, Cap-Ex Measures Surged In August

After declining two months this summer, the National Restaurant Association’s Restaurant Performance Index surged in August, rising a full point to 101.9. All eight components of the RPI were positive, with the two indicators tracking capital spending showing strong gains. Any reading above 100 for the index or any of its components signals expansion. The overall index has stood above 100 for 18 consecutive months.

The Current Situation Index rose 1.1 points to 101.8 on a 1.5 point gain in the indicator measuring current same-store sales and a very strong 1.8 point gain in the marker for capital spending during the past three months. The current cap-ex marker now stand a 101.8.The indicator had been flat or negative for the past three months, though it never dipped below 100.  The customer traffic component rose 0.7 point and the indicator tracking labor counts and hours rose 0.3 point.

The Expectations Index, up 0.9 point to 102.1, saw a 1.2 point gain in the staffing outlook, 0.7 point gains for future same-store sales and business conditions and a 1 point increase in the marker tracking intention to make a capital expenditure during the next six months. The future cap-ex measure now stands at 101.8. It too had fallen in June and July.

Of the operators surveyed, 59% reported they made a capital buy during the past three months or intended to make such a purchase in the next six months. Both numbers are among the highest percentages indicating activity since the end of the recession.

The full NRA RPI can be viewed at restaurant.org.

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