Aftermarket Business Leaders Less Confident in the Economy
According to April Results of AAIA/Northwood University Business Confidence Index
BETHESDA, MD – June 2, 2011 – Results of the joint Business Confidence Index for April 2011 show that aftermarket business leaders’ confidence in the overall economy has wavered in the past month. Additionally, fewer of them currently report feeling significantly more confident about doing business in the industry, reports AAIA and Northwood University.
AAIA members completed the fourth monthly index survey, and data shows that:
- Only 3.5 percent were significantly more confident in the economy over the next 12 months, a decrease from 7 percent in March 2011. Thirty-seven percent reported being slightly more confident about the economy over the same period, which is constant from March 2011.
- Only 12.3 percent of respondents were significantly more confident about doing business in the aftermarket over the next 12 months, a decrease from March’s 19 percent. Forty-two percent were slightly more confident in the aftermarket over the next 12 months, which is up from 41 percent in March 2011.
- A score of 51-100 on the index signals leaders are “significantly more confident” in the aftermarket or the economy respectively over the next 12 months, while a score of 1-50 indicates they are “slightly more confident” in said areas over the next 12 months.
Aftermarket business leaders were less confident in the economy as a whole in April as the AAIA/Northwood University Economic Confidence Index fell from 7.4 to -6.14, the first time the index has reported a negative number to date. The overall AAIA/Northwood University Automotive Aftermarket Business Confidence Index for April was 16.7, down from 30.6 in March, leaving aftermarket leaders in the lower third of the “slightly more confident” range (see Tables 1 and 2, and Chart 1).
“It is clear aftermarket leaders had less confidence in the industry, and in the overall economy, in April relative to March of this year,” said Dr. Timothy Nash, Northwood University. “The AAIA/Northwood University Automotive Aftermarket Business and Economic Confidence Indices were mixed in April, but mirror concerns many economists have, that the general economy could be slowing down as aftermarket leaders’ confidence in the general economy declined for the fourth straight month.”
The fifth installment of the survey will be sent to members in early June, and results will continue to be calculated monthly and reported in AAIA SmartBrief. Member responses will be used solely in the aggregate and for the purpose of providing empirical information.
For more information, contact AAIA market intelligence at 301-654-6664.
About Northwood University
Northwood University is committed to the most personal attention to prepare students for success in their careers and in their communities; it promotes critical thinking skills, personal effectiveness, and the importance of ethics, individual freedom and responsibility. Private, nonprofit and accredited, Northwood University specializes in managerial and entrepreneurial education at three full-service, residential campuses located in southern Florida, mid-Michigan and northern Texas. Adult Degree Program centers are available in eight states with many course delivery options including an online option. The DeVos Graduate School offers full-time, evening and industry specific master’s degree programs for entrepreneurs and executives in Michigan, Texas, Florida and Switzerland. The Alden B. Dow Center for Creativity and Enterprise in Midland, Michigan specializes in creative thinking and innovation development. International education is offered through study abroad and in Program Centers in Switzerland, China, Malaysia and Sri Lanka. Northwood University has the only full-accredited bachelor’s degree in automotive and heavy duty aftermarket management in the world.