DURHAM, N.H. - The Lodging Executives Sentiment Index (LESI) for the current period ending June 2016 decreased to 62.5 from 80.6 in June 2015. Overall, the lodging executives' sentiment for present and future business conditions weakened considerably during this year. The index is managed at the University of New Hampshire.

"Lodging executives expectations for present and future business conditions weakened, as as did their sentiment about future hiring 12 months out," said Nelson Barber, associate professor of hospitality management in UNH's Peter T. Paul College of Economics. "There is an anticipation of an overall business slowdown despite a good summer season."

The index is based on a monthly survey of lodging executives representing companies with more than 2.5 million hotel rooms across lodging segments and geographic regions of the United States -- more than 55 percent of all U.S. rooms. It gives lodging managers an early glimpse of the direction of the overall industry beyond their own properties and markets, helping them in operational and planning decisions.

Executives were asked about present and future business conditions, and to report their outlook during the next 12 months about room reservations and employment practices, such as an increase or decrease of their non-managerial work force.

Fifty percent of lodging executives indicated current business conditions were good, a decrease from 89 from the June 2015 period. During the current period, 50 percent of the executives expressed present conditions would remain the same, a worsening from the June 2015 period where 11 percent of the executives reporting considered conditions would remain the same.

The LESI indices follow the Institute of Supply Management's Index (ISM) method of tracking leading indicators. A LESI survey reading of greater than 50 indicates expansion, whereas a reading below 50 indicates decline. The distance from 50 in either direction indicates the strength of the expansion or decline. During the June period of time, the ISM index decreased to 53.2 from 53.5 in June 2015.
 
Twelve months from now, lodging executives' future employment sentiment of hiring of non-managerial employees continued its slide from last year, decreasing to 45 in June 2016 from 50 in June 2015. Lodging executives appear to be holding back on adding new employees with the decline in future business demand and that may be linked to their sentiment of the future business conditions.

Reservations 12 months out are flat over last year. The ISM employment index decreased to 50.4, from 55.5 in June 2015, suggesting the manufacturing sector has a similar outlookto that of lodging executives. The Bureau of Labor Statistics (BLS) reported an increase in the unemployment rate from May 2016 [4.7] to 4.9 in June 2016.

Looking forward, none of the executives thought business conditions will be better in the next 12 months, a decrease from 33 percent during the June 2015 period while 100 percent indicated they will be the same, up from 67 percent during the June 2015 period. During the two periods, no executives indicated future conditions were bad. 

For more information about LESI, visit http://paulcollege.unh.edu/LESI.

The University of New Hampshire, founded in 1866, is a world-class public research university with the feel of a New England liberal arts college. A land, sea, and space-grant university, UNH is the state's flagship public institution, enrolling 12,300 undergraduate and 2,200 graduate students.