Economic Confidence Sliding Among Aftermarket Business Leaders
According to May Results of AAIA/Northwood University Business Confidence Index
BETHESDA, MD – July 12, 2011 – Results of the joint Business Confidence Index for May 2011 show that aftermarket business leaders were less confident in the economy as a whole in May, as the AAIA/Northwood University Economic Confidence Index fell from -6.14 to -28.72, which is the second consecutive negative value as well as the lowest value the index has reported to date.
The overall AAIA/Northwood University Automotive Aftermarket Business Confidence Index for May was -5.32, down from 16.67 in April, leaving aftermarket leaders in the upper portion of the “slightly less confident” range for the first time since the index was created (see Tables 1 and 2, and Chart 1).
AAIA members completed the fifth monthly index survey, and data shows that:
- Twenty-six percent were slightly more confident in the aftermarket over the next 12 months, which is down from forty-two percent in April 2011. Additionally, only 8.5 percent of respondents were significantly more confident about doing business in the aftermarket over the next 12 months, a decrease from April’s 12.0 percent.
- A meager 2.1 percent were significantly more confident in the economy over the next 12 months, a decrease from 4.0 percent in April 2011. Nineteen percent reported being slightly more confident about the economy over the same period, which is down from thirty-seven percent in April 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.
“It is clear aftermarket leaders had less confidence in the industry in May relative to April of this year,” said Dr. Timothy Nash, Northwood University. “It is also reflected that business leaders were less confident in the overall economy in May relative to April. Unfortunately, for the first time in the history of these indices, aftermarket leaders turned the AAIA/Northwood University Automotive Aftermarket Business Confidence Index and the AAIA/Northwood University Automotive Aftermarket Economic Confidence Index slightly negative for the next 12 months.”
The sixth installment of the survey will be sent to members in July. Results will 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, Mich. 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.