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NAED Reports Slowdown in Distributor Sales Growth
April 30, 2007
The number of electrical distributors reporting sales growth continued to decline during the first quarter of 2007, however they look for a strong upturn in the second quarter, according to National Association of Electrical Distributors' newly released Quarterly Sales Change Expectation Survey.   ; For the quarter ended March 31, 61.2% of distributors indicated their sales had grown. This marked the third consecutive quarter in which the percentage of distributors reporting growth had declined. The portion of distributors estimating increases of 10% or more remained virtually unchanged from the prior quarter at 29.5%. The number of distributors whose sales declined grew to 31.7%. Among regions, the Northeast experienced a difficult quarter as only 32.4% of distributors posted gains.
Distributors have positive expectations for the second quarter, with 75.7% forecasting sales increases. In addition, 24.3% of those surveyed foresee their sales increasing by 10% or more. Flat or declining sales were predicted by 21.6% of the respondents.