January 1998

The Recreation Vehicle Industry Association reports that deliveries of towables and motor-homes totaled 21,900 units in January 1998, up 32% over last month and a 10.1% improvement over this same month one year earlier. Conversion vehicles also improved in January, up 7.8% over last month but off 26.5% over January a year ago on shipments of 11,100 units.

The Index of Consumer Sentiment climbed to 106.6 in the January survey, according to the University of Michigan's Survey Research Center. January's increase nearly reverses the small December decline and brings the Index back to near all-time record levels.

"While consumers are becoming more sensitive to the Asian economic crisis, anticipated increases in purchasing power has boosted the Index to new highs," reported Dr. Richard Curtin, Director of the survey. "Concern for inflation has dropped to levels not seen in 30 years and the once common strategy of buy-in-advance of price increases has more likely been replaced with postponing purchases in anticipation of falling prices."

Retail sales activity, as measured by surveys of manufacturers, indicated strong final sales of travel trailers, fifth-wheels trailers and folding camping trailers during the first month this year. Type A motorhomes as well as type C motorhomes also improved but remained below the "100" line indicating sales were slightly less over the past twelve months than for the twelve months preceding.

Towable RVs

Shipments of all towable RVs were at 17,300 units in January, up nearly 40% over last month and ahead of this month last year by 10.9%. Conventional travel trailers increased 23.3% over January, 1997 and the 7,400 units reported shipped this year are the most for any January in the past 20 years.

Fifth-wheel travel trailers also shot up, increasing 19% over last month and up 2.4% over January last year. Folding camping trailers also did well, rising 32% over the previous month and 4.3% over this same month, a year earlier.

Motorhomes

Deliveries to retailers of all motorhomes improved nearly 10% from December's strong year-ending total and at 4,600 units were 7% ahead of the first month last year. Conventional type A motorhomes led the way with deliveries of 3,200 units representing 70% of all motor-home production. Type A units with slideouts now account for more than half of all type A motorhomes produced.

Conversion Vehicles

Deliveries to retailers of all conversion vehicles increased nearly 8% over December totals but fell short again when compared to the same month a year ago. Van conversions remain the category's largest product type with more than 60% of conversions. Still, their continued de-clines remain troubling as totals last year were nearly 20% higher than this January. Pickup truck conversions slumped in the final few months of 1997 but Jan-uary's total of 3,300 units may have marked a reversal of those earlier declines. Sport utility vehicle conversions, while low in number, have provided a much steadier market.

Source: RVIA