As a result of softer customer traffic and a dampened outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) fell to its lowest level in nine months. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.2 in July, down 1.1% from June and the lowest mark since a reading of 100.0 in October 2011. However, July still represented the ninth consecutive month that the RPI stood above 100, which signifies continued expansion in the index of key industry indicators.

“Although restaurant operators reported positive same-store sales for the 14th consecutive month in July, their economic outlook for the months ahead continued to soften,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Only 22 percent of restaurant operators expect economic conditions to improve in the next six months, the lowest level in 10 months.”

At the same time, restaurant operators reported relatively steady levels of capital spending. Forty-six percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, down slightly from 48% who reported similarly last month.

Reihle further notes, “Despite their uncertainty, roughly one-half of restaurant operators still plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, which is a positive indicator for both the industry’s supply chain and the overall economy.”

The RPI indicates restaurant operators’ capital spending outlook remains relatively firm. Forty-nine percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, down slightly from 51%  who reported similarly last month.