UBS business jet index on the rise
The business jet market appears to have found its way after months resting at levels not seen since the 2008-2009 financial crisis with the latest figures from the UBS Business Jet Market Index showing a 7 percent increase to a level of 31.
By cabin size, the midsize cabin index came out on top with a rise of 14 percent to 33, the small cabin index was flat at 32, the same reading as May, and large cabins are still performing poorly with a reading of 28, although that was still up 3 percent from the last report. The “straight-up measure of absolute business conditions” came in at 4.3, 7 percent higher compared to figures released in May, UBS reported.
The investment bank said it saw improved scores for customer interest, which was up 11 percent, as was the 12-month outlook, which rose 14 percent from May. UBS said dealers appeared willing to increase inventories but pricing was still proving problematic.
Customer interest scores increased in North America, rising 3 percent to 48, Latin America was up 2 percent to 36, the Middle East was up 7 percent to 39 and Asia rose 14 percent to to 42. Europe disappointed with a 21 percent fall to 33 with respondents citing the UK vote to leave the EU, according to UBS.
The bank reported that its financing score, which is not a component of the index, increase 9 percent to 54, indicating financing conditions had improved since May.
For the next 12 months, UBS reported that 26 percent of the survey respondents said they expect business conditions to improve, while 22 percent expect business conditions to deteriorate. The remaining 52 percent expect business conditions to stay the same over the next 12 months.
“This result is better than our prior survey in which 21 percent expected business conditions to improve, while 29 percent expected business conditions to deteriorate and 50 percent expected business conditions to stay the same,” UBS said in the report.