By  on August 21, 2009

The outlook for the salon and spa industry rose slightly in the second quarter, according to the Professional Beauty Association’s Performance Index, which surveys 700 salons and spas nationwide.

The quarterly composite index that tracks the health and outlook of spas and salons increased 0.7 percent from the first quarter. PBA launched the Performance Index this year, which consists of two components: the current situation index and the expectation index.

The current situation index measures salon and spa owners’ customer traffic flow, employee hires and fires, capital expenditure and service and retail sales. The expectation index asks these owners about their outlook for the industry, what their feelings are about the future of business and how positive or negative these feelings are.

According to the survey, the current situation index rose 0.9 percent and the expectation index rose 0.6 percent.

While the increases are good, the current situation index remained below 100 at 99.7, signifying contraction. However, expectations grew to 103.9 in the quarter, showing that there is a solid level of optimism for industry growth in the months ahead.

The index was formed so that salons and spas have a metric to gauge performance, such as the restaurant and housing industries, said Sam Leyvas, director of Government & Industry Affairs for PBA.

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