Store Front Business Index - June 2016
The Store Front Index – What happened through Q1 2016
At the end of May 2015, the Dow Jones index was not far from its all-time high at just over 18,100. Three months later, the index fell almost 9% to near 16,500. Over the next 3 months, it was back up 7% to just under 18,000. Three months later – back down 7% to near 16,500 again; and currently it is back up over 18,000. Through all the wild swings in the stock market, a walk down Main Street shows the economy is doing pretty well. The bedrock businesses of the American economy, from your local drycleaner to your favorite pizza place to home construction, are doing well. That’s the message from the June 2016 edition of the Store Front Index which shows what happened through the end of 2015.
The Store Front Index (SFI), powered by PYMNTS.com and CAN Capital, tracks and pro le the health of store front businesses in the U.S. These are businesses we know and interact with on a regular basis – the ones that keep our communities thriving and surviving1. Across all regions of the country, we look at eating establishments, professional and personal services, construction, remodeling and repair services, tness clubs, and a wide variety of retailers.
Store front businesses are doing well. The SFI stood at 113.7 points in Q3 2015 compared with 109.9 points in Q3 2014. This represents growth of 3.5% in real terms between Q3 2014 and Q3 2015. That outpaced real GDP growth of 2.0%--a signi cant 150 basis points difference2. (These and all numbers are based on compounded annual growth rates). We forecast a continued increase with the SFI standing at 115.3 points for Q1 2016, which represents real growth of 3.1% over Q1 2015. While the real GDP grow is expected to slow to 1.4%, the growth is still solid and we would not expect a signi cant impact extending to our local businesses. Of course, the economic world is unsteady now, and small businesses risk blow back from any number of this.
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