Business improved for the restaurant industry in September, raising hopes among US restaurant operators.
The National Restaurant Association’s RPI (Restaurant Performance Index) stood at 100.3 in September, up a solid 0.8 percent from its August level. What is more, the RPI rose above 100 for the first time in five months.
The RPI is a monthly composite index that tracks the health of and outlook for the restaurant industry in the United States.
Restaurant operators reported positive same-store sales and customer traffic levels for the first time in six months, which propelled the RPI’s Current Situation Index to its highest level in nearly three years.
The RPI is constructed so that the health of the restaurant industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, and index values below 100 represent a period of contraction for key industry indicators. The RPI consists of two components, the Current Situation Index and the Expectations Index.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 99.4 in September â€“ up 0.5 percent from August and its strongest level since October 2007. However, the Current Situation Index remained below 100 for the 37th consecutive month, as the softness in the labor and capital expenditure indicators outweighed the gains in same-store sales and customer traffic.
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