Consumer Confidence Increases, Back-To-Back Monthly Gains Spell Good News – UnderhoodService
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Consumer Confidence Increases, Back-To-Back Monthly Gains Spell Good News

The Consumer Confidence Index is up and that should spell good news for your import repair business.

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The Consumer Confidence Index is up and that should spell good news for your ­import repair business. Posting another gain in May, standing at 76.2 (up from 69.0 in April), consumer confidence is now at a five-year high.

Lynn Franco, director of economic indicators at The Conference Board, said “Consumers’ assessment of current business and labor-market conditions was more positive, and they were considerably more upbeat about future economic and job prospects. Back-to-back monthly gains suggest that consumer confidence is on the mend and may be regaining the traction it lost due to the fiscal cliff, payroll-tax hike and sequester.”

Consumers’ appraisal of present-day conditions also improved in May, according to The Conference Board. Those saying business conditions are “good” increased to 18.8% from 17.5%, while those stating business conditions are “bad” decreased to 26% from 27.6%.

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Those expecting business conditions to ­improve over the next six months increased to 19.2% from 17.2%. Consumers’ outlook for the labor market was also more upbeat, with those expecting more jobs in the months ahead improving to 16.8% from 14.3%.

So, here’s the takeaway:

• As consumer confidence ­increases, their deferral rate for vehicle maintenance should ­decrease.

• Correspondingly, consumers’ attitudes toward funding necessary vehicle repairs should improve.

• The number of customers who value a maintenance plan should increase, as should your ­average number of repair orders. Take the time to educate your customers that simple changes to their car care regimen can prevent larger-ticket repairs down the road.

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• You have the opportunity to help maintain your customers’ vehicles for peak performance, and the resulting positive repair experience will provide plentiful word-of-mouth referrals for your shop. 

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