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The Professional Beauty Association's (PBA) recently released Salon/Spa Performance Index indicates the industry is still growing, with most skin care and salon professionals optimistic for the future.
The outlook for the salon/spa industry remained positive in the third quarter, as the Professional Beauty Association's (PBA) Salon/Spa Performance Index (SSPI) rose for the second consecutive quarter. The SSPI, a quarterly composite index that tracks the health of and outlook for the U.S. salon/spa industry, stood at 101.9 in the third quarter, up 0.1 percent from its second quarter level.
The SSPI is constructed so that the health of the salon/spa industry is measured in relation to a steady state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key industry indicators.
"For the first time this year, salon/spa owners reported a net increase in service sales. However, they also reported that retail sales continue to be soft," said Sam Leyvas, PBA's director of government affairs. "Long-term, we are seeing growing optimism on the part of salon/spa owners both in terms of service and retail sales in the months ahead."
The SSPI is based on the responses to PBA's Salon/Spa Industry Tracking Survey, which is fielded quarterly among 800 salon/spa owners nationwide on a variety of indicators including service and retail sales, customer traffic, employee/hours and capital expenditures. The Index consists of two components: the Current Situation Index and the Expectations Index.