Sales at Sit-Down Restaurants Suggest a Rising Economy

Excerpt from an article in

The New York Times

Saturday, March 17, 2012

Sales at Sit-Down Restaurants Suggest a Rising Economy

By FLOYD NORRIS

Have you been eating more at restaurants with waiters rather than fast-food joints?

If so, you are not alone, and that in fact is an indication that the American economy is improving.

Over the 12 months through January, sales at what the government calls full-service restaurants were 8.7 percent higher than in the previous 12 months. That was the fastest pace of growth since the late 1990s, when the economy was booming. Moreover, as is seen in the accompanying charts, that rate was much greater than the rate of growth in sales at limited-service restaurants.

Since those numbers became available 20 years ago, that difference has been a reliable indicator of how the economy is going. In tough times, people may still eat out, but they cut back.