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Consumer Demand Index Up 85% From a Year Ago
|The April SEMA CDI increase could indicate that consumers are willing to purchase more products in the next few months.
SEMA’s Consumer Demand Index (CDI) experienced yet another increase in April, going from 45 to 48. Representing a 7% increase, the CDI again matches closely with the Consumer Confidence Index which experienced an 11% increase from March to April.
The CDI is a weighted composite index, set to an initial value of 100 based on demand levels benchmarked between January and March 2007.
The April increase experienced by the CDI follows the 10-point increase from the month before and marks an 85% increase from April 2009. This could signal an indication that consumers are willing to purchase more products in the next few months—much needed good news for the specialty-equipment market.
In particular, approximately 1,094,000 households reportedly intend to make specialty-equipment purchases in the next three months, equating to $1.6 billion in sales. These buyers are most likely to purchase racing and performance products, followed by accessories and appearance products.
The SEMA Consumer Demand Index for Performance Products and Accessories (formerly PADI) measures purchase intentions of consumers (both enthusiast and mainstream) over the following 90 days. As enthusiasts represent approximately 10%–15% of U.S. drivers, the index is likely to be an indicator of mainstream consumer demand for automotive specialty and performance products.