Wholesale shipments to retailers of all RVs were reported at 24,900 units in the January survey of manufacturers, down 7.1% from this same month one year ago. Although January’s results were 11.2% higher than December’s, this was the lowest total for any January since 2002. Weakening general economic conditions have hampered shipments of RVs over the past several months.

Although it showed some slight improvement in January, a contributing factor to weakening economic factors has been the rapid decline of consumer confidence. As measured by the University of Michigan, the Index of Consumer Sentiment has declined more than 13 points since January 2007. Overall, the data remain consistent with a slowdown in the pace of consumer spending on durables and vehicles in the months ahead.

“The tax rebate recently enacted is well targeted toward those who have reported the greatest stress from rising prices”, said Dr. Richard Curtin, director of the survey. “However, given the current financial distress, there may be a high number who will prefer to repay debt and add to savings as a precaution against economic uncertainty.”

Although we have witnessed an aggressive Fed move to cut interest rates over the past several months, higher credit standards have had a negative impact on all consumer spending. Declining home values and nervous equity markets have added to the wealth effect malaise, so important for sustained gains in consumer confidence. Aggressive fiscal as well as monetary policies are needed to start a recovery.

Towable RVs

In spite of the weakened general economy, wholesale shipments of all towable RVs were reported at 21,600 units in January, off just 4.4% from this same month last year. Conventional travel trailers declined just 3% to 12,800 units while fifth wheel trailers slipped 10.6% to 5,900 units this month. Folding camping trailers increased slightly as truck campers held their own.

Motorhomes

All motorhome shipments were not as fortunate, slipping 21.4% to 3,300 units in January. Shipments of type A motorhomes were off 30% this month, sliding from 2,600 units in January 2007 to 1,800 units this year. Type B motorhomes were off 33.3% on much smaller volume while type C motorhomes were reported at the same total compared to January 2007.