Recreation Vehicles

August wholesale shipments of all RVs increased 7.5% over last month but were 2.4% lower than this same month last year. In all, total deliveries to retailers of 32,800 units were reported in the latest survey of manufacturers, with towable RVs lower than the corresponding month one year earlier for the first time in twelve months. Year to date, shipments of 288,300 units have been reported representing an 11.1% gain over this same period one year ago.

Falling fuel prices and a “pause” in interest rate hikes has brightened prospects for future economic growth. However, consumer sentiment, as measured by the University of Michigan, declined slightly in the August survey, as consumers remain more concerned about rising inflation than by higher interest rates or fuel prices. The good news in this is that the Federal Reserve under the leadership of Chairman Ben Bernanke appears prepared to raise rates if inflation is deemed to be a significant threat.

Cheaper money would certainly enhance retail sales with August readings lower for all but conventional and fifth wheel trailers. Of particular concern is the long term trend in the final sale of type A motorhomes which have declined for nearly two years now.

Towable RVs

Wholesale shipments of all towable RVs declined 1.4% over a very strong August last year. Still, total shipments to retails for all towables were 27,800 units, the second best August total in nearly 30 years. Year to date, all towable RV shipments have now reached 249,600 units, an increase of 15.7% over the same period compared to last year.

Conventional travel trailers declined slightly this month for the first time all year and year to date remain 23.3% more than this same month last year. Fifth wheel travel trailers also slipped in the August survey as they too were lower than the same month last year for the first time in more than twelve months.

Motorhomes

Wholesale shipments of all motorhomes were reported at 5,000 units in the August survey, off 7.4% compared to this same month one year ago. Both type A and type B motorhomes were lower while type C motorhomes grew by 200 units over last year to 2,000 in August 2006.

Year to date, all motorhome shipments were reported at 38,700 units, down 11.4% compared to the same period one year earlier.

Conversion Vehicles

All conversion vehicle shipments totaled just 1,700 units in August, down 41.4% compared to the same month last year (see page 17). Van conversions remained the category’s leading product type with nearly 60% of the group’s total shipments but were also off the greatest percentage compared to August last year. Year to date, all conversion vehicles are now at- 19,200 units through August, off 23.2% compared to this same period last year.