The 2020 Mid-Year Economic Update_long

Home Improvement Index Flat

But American Hardware Manufacturers Association members indicate optimistic future expectations.

The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index remained at 45.8 in October (the same reading as September), while the Future Expectations Index moved up to an all-time high of 201.7 from 191.4 in September.

In comparing current sales levels to year-ago levels, 11 percent of respondents said sales were higher in October versus year-ago levels, matching the September percentage. For October, 15 percent reported sales were even, and 75 percent said sales were below year-ago levels, up from 72 percent in September.

Looking forward six months, 48 percent of October respondents said they expect sales to be above current levels, up from 44 percent in September. In October, 41 percent of respondents said they expect sales to be even in six months and 11 percent expect sales to be below current levels.

Looking forward one year, 69 percent of respondents project sales will be higher, up from 67 percent who felt that way in September. Twenty-seven percent of October respondents project sales will be even one year from now and just four percent project sales will be below current levels.

Timothy S. Farrell, president and CEO of the American Hardware Manufacturers Association, said: “While the October survey indicates a high degree of optimism looking ahead six and twelve months into the future, the industry remains cautiously and conservatively focused on maintaining tight cost controls while it awaits the recovery of macroeconomic factors such as housing sales, consumer confidence and employment levels.”

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.
AHMA is a 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.

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