NRA’s Performance Index Rose In May
The National Restaurant Association’s Restaurant Performance Index rose 0.6 point to 100.9 in May, as six of the index’s eight indicators posted gains, and the Current Situation Index moved back above 100, the tipping point that separates expansion from contraction. Both of the RPI’s capital spending indicators increased during the month.
The Current Situation Index rose to 100.2 as all four components increased. It was only the second time since September 2016 that the CSI has been in expansion territory above the 100 level. The same-store sales indicator rose 0.9 point while that tracking customer traffic was up 1.3 points. The labor component, which tracks number of employees and hours worked, posted a strong 1.7 point gain. All comparisons are against the same month last year.
The Expectations Index increased 0.2 point in May. The index has been in expansion territory every month since November 2012. The indicator tracking expected same-store sales in six months fell 0.9 point, and the future business conditions marker was off 0.2 point. But the staffing indicator, which tracks expected number of employees in six months, rose 0.4 point.
The capital spending indicator which tracks operator purchases during the past three months was up 0.3 point to 102.4, as 62% of respondents reported they made a capital buy, up from 61% in April. Sixty-four percent of operators said they plan to make a capital purchase during the next six months, up strongly from 56% in April, pushing that indicator up 1.5 points to 102.7, its strongest reading since September last year.
Find the complete RPI here.