RV Shipments Keep Sliding

This cannot be a good sign for the economy:

The RV Industry Association’s April survey of manufacturers found that total RV shipments ended the month with 40,243 wholesale shipments, a decrease of 15.2 percent from the 47,442 units shipped last April.

All categories of towables and motorhomes were down for the month.

Towable RVs, led by conventional travel trailers, totaled 35,718 units for the month, a decrease of 13.7 percent compared to last April’s total of 41,411 units. Motorhomes finished the month with 4,525 units, down 25 percent compared to the April 2018 total of 6,031 units.

Through April, RV shipments have reached 140,219 units, down 24 percent from the 184,528 units at this point last year.

RV shipments are typically a leading indicator of a pending recession. Best to avoid investing in companies like Thor (52-week high of $110 and trading now at $56), Camping World (52-week high of $27 and trading now at $11) and those companies that are heavily exposed to the RV industry.

From the Atlantic:

RV sales turn out to be a pretty good predictor too: When RV sales are doing well, the economy follows; when RV sales tank, the economy is soon to tank too… The RV industry has repeatedly fallen in advance of more widespread economic troubles.

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