The most recent data from the Bureau of Labor Statistics showed the Sporting Goods CPI Index at 101.8 for October, up 0.3% versus the October 2002 index. This is the first time the Index has been positive in more than five years, since February 1998, to be exact. In the previous reporting month (September), the Index had declined 0.4%. Since its December 1999 peak of negative 5.8%, the Sporting Goods CPI had been gradually moving higher (i.e., less negative), reaching its best showing of a negative 0.2% in June of this year. For 2002, the decline averaged 2.6%. The CPI for All Items in October 2003 increased 2.0% from the same month in 2002.
When compared to the CPI for All Items, the CPI for Sporting Goods provides an indicator of the ability to increase consumer prices for sports equipment. An inability to increase prices does not necessarily mean an inability to increase profits. Improved purchasing, inventory management and reductions in operating expenses can improve profitability without pricing increases.
Full comparisons for the last four years are available in the members-only “Research & Statistics” area of the NSGA Web site.
