Boat Dealers NAICS 441222

Jul 28, 2025 - Powerboat Sales Drop

• New powerboat retail unit sales declined by 9% year to date through April 2025, compared to the same period a year ago, amid ongoing economic uncertainty, according to the Monthly Recreational Boating Industry Data Summary from the National Marine Manufacturers Association (NMMA). Sales fell in several categories during the period year over year, including new pontoons (-19.5%), jet boats (-19.9%), and wake sport boats (-14.3%). Segments with flat sales included freshwater fishing boats and yachts. According to the report, “While economic fundamentals remain relatively intact, shifting consumer psychology is weighing on durable goods like boats. Higher interest rates, tighter credit, and perceptions of economic uncertainty are converging to create a more hesitant buyer.
• Consumer sentiment, an indicator of discretionary spending, increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index from the University of Michigan hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• Sales for the US boat dealers industry are projected to grow at a CAGR of 2.19% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. The forecast said retail spending could soften with the growth of spending on consumer services. Another factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation.
• The Retail Trade Industry is one of 10 industries reporting growth in June’s Services ISM Report on Business. Executives in the Retail Trade industry reported an increase in business activity, prices paid for materials and services, and inventories along with slower supply deliveries, a decrease in order backlogs, and lower employment in June. Additional industries reporting growth during the period were Other Services; Transportation & Warehousing; Utilities; Arts, Entertainment & Recreation; Management of Companies & Support Services; Wholesale Trade; Public Administration; Information; and Real Estate, Rental & Leasing. Six industries reporting contraction during the period were Agriculture, Forestry, Fishing & Hunting; Construction; Mining; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Educational Services. Overall, economic activity in the services sector grew in June after a contraction in May, with the Services PMI registering 50.8%.