AAIA’s Business Confidence Index for April 2011 shows that aftermarket executive confidence in the overall economy has wavered in the past month.
The monthly survey also showed that:
Only 3.5% were significantly more confident in the economy over the next 12 months, a decrease from 7% 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% of respondents were significantly more confident about doing business in the aftermarket over the next 12 months, a decrease from March’s 19%. Forty-two percent were slightly more confident in the aftermarket over the next 12 months, which is up from 41% in March 2011.
According to AAIA, a score of 51-100 on the index signals that executives 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 executives 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 Business Confidence Index for April was 16.7, down from 30.6 in March, leaving aftermarket executives in the lower third of the “slightly more confident” range.
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 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.”