June Restaurant Index Highest Since August 2007

The National Restaurant Association released its monthly report on the health of America's restaurant industry last week for the month of June, here are some highlights:

1. The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 100.5 in June – up a solid 1.4 percent from May’s level of 99.2 (see chart above). The Current Situation Index has been above 100 in three of the last four months, which signifies expansion in the current situation indicators. 

2. The Current Situation Index in June was at the highest level since August 2007, almost five years ago. 

3. The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 100.7 in June – up slightly from May’s level of 100.6. June represented the 11^th consecutive month above 100 for the Expectations Index, and the modest improvement came on the heels of three consecutive monthly declines.