AHMA Industry Confidence Indexes down slightly
The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index declined in February to 229.2 from 270.8 in January (October 2008 = 100), while the Future Expectations Index also declined slightly to 246.6 from 250 a month earlier.
In comparing current sales levels with year-ago levels, 55% of respondents said sales were higher in February versus year-ago levels, down from 65% in January. For February, 18% reported sales were even, and 27% said sales were below year-ago levels.
“It is certainly encouraging that most of our members, through good management and aggressive product marketing, are reporting current sales levels above year-ago levels," said Timothy S. Farrell, president and CEO of the AHMA. "However, we continue to be concerned about the prospects for sustainable long-term growth, given the current macro-economic situation wherein unemployment in the country is at 9%, and the federal budget deficit is projected by the Congressional Budget Office to reach $1.5 trillion during 2011.”
Looking forward six months, 70% of February respondents said they expect sales to be above current levels, up from 61% in January. In February, 27% of respondents said they expect sales to be even in six months, and 3% expect sales to be below current levels.
Looking forward one year, 73% of respondents project sales will be higher, down from 84% who felt that way in January. Twenty-seven percent of February respondents project sales will be even one year from now and 0% project sales will be below current levels.