ECONOMIC INDICATORS AFFECTING THE INDUSTRIAL POWER LIFT TRUCK INDUSTRY: OVERVIEW OF THE IMPACTS AND STATUS OF SELECTED INDICATORS
Economic indicators previously identified as influences on the industrial power life truck industry are considered in this report in relation to (a) defining their impact on the industry and (b) describing the current status of the selected indicators. The selected economic indicators are (a) real gross domestic product (GDP) and (b) personal income. Data are presented for the years 2002, 2203, and 2004.
Real GDP refers to gross domestic product adjusted for the effect of price inflation in the economy. Price inflation in the economy for 2002, 2003, and 2004 was 2.15 percent in 2002, 1.43 percent in 2003, and 2.75 percent in 2004 (Bureau of Labor Statistics, 2005a). Within the industry, the producer price index for the industry experienced both inflation and deflation as follows: 2.64 percent in 2002, - 0.1 percent in 2003, and 3.88 percent in 2004 (Bureau of Labor Statistics, 2005b).
Real GDP influences demand for the products of the industrial lift power trucks industry indirectly by influencing consumer demand. Slower GDP growth (or GDP contraction) lowers consumer demand. In turn, retailers, wholesalers, and other users of industrial power lift trucks lower their demand for such products. Changes in real GDP for 2002, 2003, and 2004 are presented in graphic form in Chart 1.
As the data presented in Chart 1 indicate, the status of the Real GDP indicator is neither all good for all bad for the industry. Real GDP growth was higher at the close of 2004 than it was during 2002 and early-2003; however, Real GDP declined in 2004.
Changes in the personal income indicator also influence demand for the products of the industrial lift power trucks industry indirectly by influencing consumer demand. Slower personal income growth (or personal income contraction) lowers consu
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