The average sales performance by Heating, Air-conditioning & Refrigeration Distributors International members increased 12.2% percent during November 2022, according to HARDI’s monthly TRENDS report, which was released Jan. 19

The average annual sales growth for the 12 months through November 2022 is 21.5% percent, HARDI said.

The 12.2% sales growth was the slowest monthly increase since July 2021, said HARDI Market Research & Benchmarking Analyst Brian Loftus.

“The annual growth rate has been declining for four consecutive months and is losing its grip on that 20 handle,” Loftus said.

The Days Sales Outstanding, a measure of how quickly customers pay their bills, is near 43.5 days as of November 2022.

“The DSO this month was comparable to the rate during November 2021,” Loftus said. “Pre-COVID, the November DSO was near 49 days. As our economy moves beyond these COVID distortions we expect the DSO to move towards the normal pre-COVID pace, but that is not happening yet.”

Loftus said the annual sales growth of HARDI distributors is “clearly slowing.”

“This is a function of the unsustainable rate of price increases rolling over, the burden of higher interest rates on the overall economy, and being compared to the elevated level of activity last year at this time,” he said. “These are tough comps.”