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It seems that US economy has slipped into recession and Americans are getting poorer for a while.
Can you see this mood on the diving business? Or not yet?
Low equipment sales, less customers’ visits, less trainings, and less trips.
It seems that the equipment price is going up every year no matter whether we are getting into the recession.
Is it only for the middle class issue or any classes (I mean, upper class) who are enjoying this sport?
How is the current market?
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NEW YORK (Reuters) - U.S. consumers' confidence weakened to the lowest in 16 years in March, pointing to recession, as worries over fading job prospects and rising inflation clouded the outlook, a survey showed on Friday.
The Reuters/University of Michigan Surveys of Consumers said its final index of confidence fell to 69.5 in March -- its lowest since February 1992, when it was at 68.8 -- from the previous month's reading of 70.8.
Economists polled by Reuters expected a reading of 70.0 in the index of confidence, which the preliminary report had said was at 70.5 in early March.
The index of consumer expectations fell to 60.1, its lowest since January 1992, when it was at 59.1. In February this year it was at 62.4.
The Reuters/University of Michigan Surveys of Consumers said in a release that "it is now nearly unanimous among consumers that the economy has already entered a recession."
"Consumer confidence slipped due to growing concerns about weakening prospects for the economy as well as anticipated increases in unemployment and inflation during the year ahead," the statement said.
The report showed the final reading on one-year inflation expectations jumped to 4.3 percent in March from 3.6 percent in February.
That was the highest final reading since October 2005, when gasoline prices were soaring in the wake of Hurricane Katrina, but was down from the preliminary March reading of 4.5 percent.
The index of consumers' economic outlook for the next 12 months fell to 46 -- the lowest since a similar reading in January 1991 -- from 54 in February.
Financial markets showed little reaction to the data. Stocks remained higher on the day, mainly benefiting from an earlier boost due to benign inflation data in the U.S. personal income report.
The dollar was up versus the yen and the euro. Government bonds, which usually benefit from weak economic data, were mixed.
Last edited by Hoosier; March 28th, 2008 at 06:25 PM.
If any portion of the consumer economy feels the pinch of reduced growth, I can promise you that the scuba industry will feel it in spade. Remember, this is totally a disposable income market.
It's way too early to guess how this will play out. On the dark side, scuba diving like most leisure activities can be squeezed out by the real needs, which are rising in price regardless of any recession; gasoline, home heating fuel, food, etc. Also the weakening dollar will raise costs for imported equipment (almost all of it) and overseas dive travel.
On the bright side, there will be a continued shift of wealth to the new leisure class; retirees with gov't pensions, & those with solid savings. At some point interest rates will rise, transfering even more income to those with savings & paid for homes. Look around you on your next dive trip to warm water. Divers, more & more are retirees, who have both the time & money to dive.
The challenge for the scuba industry, along with golf, skiing, cycling & other recreation sports will be how to make it affordable to those still working younger folks, without which our sports will go into a long slow decline as aging participants drop out, without being replaced.
There's no easy answer, but you have to have strategies for the short, medium & long haul.
Remember, this is totally a disposable income market.
Agree.
But, in other words, it seems that some groups (like don Francisco said below) are always above business fluctuation. They might have always a disposable income though.
Originally Posted by don Francisco
On the bright side, there will be a continued shift of wealth to the new leisure class; retirees with gov't pensions, & those with solid savings. At some point interest rates will rise, transfering even more income to those with savings & paid for homes. Look around you on your next dive trip to warm water. Divers, more & more are retirees, who have both the time & money to dive.
Originally Posted by booth22
This is not correct.
Seriously I hope so.....
Originally Posted by PhilEllis
I would love to be one of the stores that survive.
I am sure you will be
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I would like to hear more from the LDS owners and average Joe divers like myself.
It's way too early to guess how this will play out. On the bright side, there will be a continued shift of wealth to the new leisure class; retirees with gov't pensions, & those with solid savings. At some point interest rates will rise, transfering even more income to those with savings & paid for homes. Look around you on your next dive trip to warm water. Divers, more & more are retirees, who have both the time & money to dive.
The challenge for the scuba industry, along with golf, skiing, cycling & other recreation sports will be how to make it affordable to those still working younger folks, without which our sports will go into a long slow decline as aging participants drop out, without being replaced.
There's no easy answer, but you have to have strategies for the short, medium & long haul.
Excellent points, especially about drawing in the next generation of divers. The industry as a whole knows this I'm sure, but it does need work hard to make it happen.
I'm an aging "Boomer" and I am always surprised at the high percentage of divers in my generation.... which is a great thing by the way... and while I do see a lot of college-age divers here locally, there is definitely a "shift" to the grey-haired side from when I first started diving in the 70's (when older divers seemed to be the exception).
Recession? Maybe. Weak dollar for sure. Gas for driving to the boat is up. Fuel prices are up, so the $50 boat trip is now $60. Most gear is imported, so that cost, if not up, will soon be. I don't anticipate diving less, just staying closer to home. And, another year with the same gear.
There are places where diving is chump change for people. A dealer-operator in affluent Palm Beach County, FL, may have less to worry about than most. Those folks will keep the sport going, to some extent, regardless.
Last edited by Stu S.; March 28th, 2008 at 07:10 PM.
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Originally Posted by Hoosier
and I am always surprised at the high percentage of divers in my generation.... which is a great thing by the way... and while I do see a lot of college-age divers here locally, there is definitely a "shift" to the grey-haired side from when I first started diving in the 70's (when older divers seemed to be the exception).
