Winnebago Sales Signal Strong U.S. Economy
Consumer confidence and GDP numbers are one way to gauge the direction of the economy. Another is to count how many recreational vehicles leave the Winnebago plant in Forest City, Iowa.
The Des Moines Register reported that RV sales are “a great indicator of the health of consumers if they are willing to spend 70, 80 grand … on a second or third home that’s on wheels,” said David Whiston, an analyst with investment research firm Morningstar.
Both motorhome sales and consumer confidence levels have been on the rise. That bodes well not only for RV sellers, but for the nation’s economy as a whole, economists say.
Winnebago Industries has seen its profit climb 50% in the first nine months of its fiscal year, compared with the same period last year. Motor home sales are up almost 30%.
Other signs of a recovering economy emerged this week. On Wednesday (July 29), the government estimated that the economy grew at a fast 4% annual rate in the April-June quarter. That compares with a 2.1% drop in the first three months of 2014, when a severe winter disrupted several industries and pushed consumers away from shopping malls and vehicle dealerships.
For the full story click here.