Manufacturers also indicate plans to invest in mobile devices and confirm the importance of a strong housing segment.
Schaumburg, Illinois, July 2, 2014 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved in June to 337.5 from 320.8 in May (June 2008 = 100), while the Future Expectations Index fell to 213.8 from 265.5 in May.
In comparing current sales levels to year-ago levels, 81 percent of respondents said sales were higher in June versus year-ago levels, up from 77 percent in May. For June, 19 percent reported sales were even, and zero percent said sales were below year-ago levels.
Looking forward six months, 57 percent of June respondents said they expect sales to be above current levels, down from 81 percent in May. In June, 38 percent of respondents said they expect sales to be even in six months and five percent expect sales to be below current levels.
Looking forward one year, 67 percent of respondents project sales will be higher, down from 73 percent who felt that way in May. Twenty-four percent of June respondents project sales will be even one year from now and 10 percent project sales will be below current levels.
Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said: “Hardware manufacturers continue to report improving year-over-year sales gains. And with most economic indicators pointing toward an environment of favorable business conditions, we would expect this trend to continue for the remainder of the year and beyond. However, some recent reports, such as first quarter GDP of minus 2.9% and disappointing consumer spending, indicate that future gains are not guaranteed.”
“Hot Topic” Questions
The June Confidence Index survey asked two supplemental questions of AHMA members:
“Electronic mobile devices have gained widespread acceptance as effective tools in the world of business. Are you planning to spend more on mobile devices in the future to keep your organization connected?” and “Recent economic reports on the housing segment have indicated weakness. How important is it to your business that housing construction and sales rebound in the second half of the year?”
To the first question, on mobile devices, 57 percent responded “Yes,” 19 percent responded “Not Sure,” and 24 percent responded “No.”
On the housing question, 67 percent responded “Very important,” 33 percent responded “Somewhat important,” and zero percent responded “Not important.”
About the AHMA Home Improvement Industry Confidence Index
The AHMA Home Improvement Industry Confidence Index is a monthly indicator of the economic health and “mood” of the industry based on a survey of AHMA members.
The data collected from the survey produces two Indexes indicating: 1) Current Situation and 2) Future Expectations. Both Indexes use survey data from June 2008 as the base reference point so that June 2008 = 100.
The AHMA Home Improvement Industry Confidence Index results are released on the first Wednesday of every month.
About the American Hardware Manufacturers Association (AHMA)
AHMA is a globally focused trade association of manufacturers, or providers, of hardware, home improvement, lawn and garden, paint and decorating, building and construction and related products, as well as manufacturers’ representative’s agencies and trade publications.
AHMA offers many valuable member and industry programs, services and activities, including the AHMA Hardlines Technology Forum, AHMA / USA International Pavilions, AHMA Advantage GPO, the AHMA eAGLE, The Hard Fax: Home Improvement Industry News, The Hard Fax International: Home Improvement Industry News from Around the World, the Home Improvement Industry Confidence Index, the AHMA Home Improvement Industry Dashboard, AHMA Home Improvement Industry Stocks, the AHMA Home Improvement Industry Calendar, the AHMA Home Improvement Industry Network on LinkedIn, AHMA News on Twitter, Government Relations Programs, Member Benefit Vendor Programs, the AHMA Hardware Industry Relief Effort (HIRE) and the AHMA / Habitat for Humanity Partnership.