The dearth of split ends sprouting from the heads of Americans means more than that we’re obsessed with our looks, it’s an indication that our economy is growing strong. The more we make frequent trips to the salon and barber shop, the more we spend. Just call it The Haircut Index.
CNBC says there’s been a rise in business at our grooming places, citing research by Sageworks. They say sales at hair salons are up 5.37% since 2009, and hairdressers’ profit margins are averaging 7.8% over the last two years. So they’re making more when you tip better and then they in turn, go out and spend that cash.
Another indication of the economy-boosting hairapalooza comes from the Professional Beauty Association index, which says that 57% of salon owners saw a same-store sales increase between 2010 and 2011 in the first quarter, and over a third added employees at that time as well.
CNBC quotes John Paul Dejoria, founder of hair care company Paul Mitchell, who says it’s all related: “Beauty salons are the best economic indicator. Typically, customers will visit every six weeks; in downturns, that drops to every eight weeks. When it goes up again, things are on the mend.”
Keep cutting and coloring that hair, people, and the economy will continue to grow. Bring on the scissors and the bleach!