A Conference Board report indicated that the percentage of consumers planning to buy major appliances fell from 28.6% in May 1992 to 27.6% in Jun 1992. Almost every category showed declines between May and Jun 1992, although the percentage of people planning to purchase refrigerators and televisions remained steady in Jun at 4.5% and 6.5%, respectively. In addition, the percentage of consumers planning to buy a washing machine increased from 3.6% in May 1992 to 3.9% in Jun 1992. Additional statistics are presented.
Report
The percentage of consumers planning to buy a major appliance fell in June to its lowest level since January, though consumer confidence in the overall economy appears to be relatively steady, according to the latest monthly Conference Board report.
- Only 27.6 percent of those surveyed said they intended to buy a specified major appliance or related product within the coming six months, down from 28.6 percent in the May survey. The percentage is the lowest since a reading of 27.4 percent in the business group’s January report.
- The previous month’s report stated that May reached the lowest level in a year, However, in the normal process of revisions, May’s figure was upgraded from the original 27.3 percent.
- The highest reading during the past year was in October, when 31.6 percent said they planned to buy a major appliance. In June of 1991, that reading stood at 24.7 percent.
Nearly every relevant category covered by the report showed declines in June. Consumers planning to buy a range fell to 2.9 percent from 3.0 percent in May, and those intending to purchase a clothes dryer fell to 3.2 percent from 3.3 percent a month earlier.
Declines were also registered in the survey by air conditioners, where the percentage planning to buy fell to 1.6 percent from 1.7 percent, and vacuum cleaners, where the percentage dropped to 5 percent from 6 percent a month earlier.
- The air-conditioner percentage was its lowest level in more than a year, while the range percentage was the smallest since February and the dryer percentage was the lowest since January.
- The percentage of people planning to buy refrigerators and television sets remained unchanged in June at 4.5 percent and 6.5 percent, respectively, while the percentage expecting to buy a washing machine increased to 3.9 percent from 3.6 percent a month earlier.
Consumers planning to buy a home in the coming months, a key trigger of appliance sales, increased to 3.5 percent in June from 3.2 percent in May. The latest reading matched the 3.5 percent found in the April survey and was the highest since a reading of 4.2 percent in February.
Overall consumer confidence stalled in June after three consecutive gains, dropping to 71.7, as compared to 71.9 in May. A score of 100 represents the average level of consumer confidence during 1985. The index has not exceeded 100 since July of 1990. The index stood at 78 in June 1991.
“The leveling off in consumer confidence in June, following the impressive gains of the preceding three months, reflects the modest pace of the recovery,” said Fabian Linden, executive director of the Conference Board’s Consumer Research Center. “The growth rate of the economy in this recovery is still quite feeble as compared to most other recession-recovery episodes.”
The index had increased 6.5 points in May from April, which in turn was 8.6 points above March’s reading.
March saw a gain of 9.2 points from February.
The results are based on a representative survey of 5,000 households conducted by an independent firm for the Conference Board, which is funded by companies, trade associations, labor organizations and universities.
