TBR Index Advances As U.S. Indicators Rebound

<B> TBR Index Advances As U.S. Indicators Rebound</B>

While the Travel Business Roundtable Index of Leading Economic Indicators grew by 0.8 percent in February--0.2 percentage points less than in the previous month--it advanced at double the rate of the Conference Board's U.S. Index of Leading Economic Indicators.

February's composite increase was attributed to jumps in five of the nine economic indicators with which the index tracks the travel industry.

Growth came in total Airlines Reporting Corp. sales, Smith Travel Research's hotel/motel revenue index, the Conference Board's consumer confidence index, the Bureau of Labor Statistics' level of travel industry employment and personal consumption expenditures for travel and other discretionary products, according to the Bureau of Economic Analysis.

While retail sales at eating and drinking establishments, taken from the Department of Commerce and Bureau of Census, remained the same, the TBR index showed declines in revenue passenger miles, according to the Air Transport Association, Smith Travel's hotel/motel occupancy rate and daily rental price according to an index provided by an industry provider.

Meanwhile, the 0.4 percent advance in the Conference Board's U.S. Index of Leading Economic Indicators in February is a dramatic change over January's flat growth, a signal that the impact of Asia's financial crisis may be less severe than what was forecasted. Industry watchers expect that index to grow by about 0.5 percent in 1998.