RubinBrown Middle Market Food & Beverage Sector 2016 Update

Current Economic Indicators

Highlights

Consumer Confidence Index

Producer Price Index

§ On a month-to-month basis, the Consumer Confidence Index continued to be volatile, but is still well above recessionary lows as shown previously, driven by higher expectations that more jobs will be created in the near future, and salaries will continue to increase, according to The Conference Board report published in July 2016. § PPI for food manufacturers declined during the year, following the high beef prices in 2014 and early 2015. Also contributing to the downward move in food manufacturing prices are lower prices for pork, eggs, and farm-level vegetables, among other commodities.

220

105

Food Manufacturing Beverage Manufacturing

100

200

95

180

90

160

85

Source: US Bureau of Labor Statistics (BLS)

Source: The Conference Board

140

80

Disposable Personal Income Per Capita

Personal Consumption Expenditures Per Capita on Food

$2,700

$40,000

$38,000

$2,600

$36,000

$34,000

$2,500

$32,000

Source: US Bureau of Economic Analysis (BEA)

Source: US Bureau of Economic Analysis (BEA)

§ Disposable Personal Income continued its

$2,400

$30,000

steady rise since late 2012.

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Food & Beverage Industry Sector: 2016 Update

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