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Consumer Demand Index Reaches Highest Level Since July 2009
With just a few days left before the start of the 2010 SEMA Show in Las Vegas, the October Consumer Demand Index Report has been released with some great news. Recovering from a recent 12-point decline experienced in August, the index jumped 26 points to 57 for October. This is the highest level the index has seen since July 2009, when the index also reached 57. The following chart shows the overall index, in blue, as well as the three-month moving averages, in red.
The value for October represents an 84% increase for the year, compared to the value of 31 that was reached in January 2010. The segment that experienced the most improvement for October was that of specialty accessories and appearance products. This segment experienced an increase of 88% compared to September, jumping from an index of 42 to 79 this month.
Keeping in mind that the purpose of the index is to predict purchases made in the upcoming three months, the index and indices included in the report can be used as a forecasting tool. That being said, 15% of U.S. households plan on purchasing specialty-equipment products within the next three months.
Over the last three months, midsize cars were, on average, the most likely to have been accessorized. Also, car dealerships were the most popular purchase destinations for those planning to purchase specialty-equipment products.
To download a copy of this report along with past copies of the Consumer Demand Index, visit www.sema.org/research/padi.