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AT AMERICAN HARDWARE MANUFACTURERS ASSOCIATION
Terry Gallagher
Manager of Communications
801 North Plaza Drive
Schaumburg, Illinois 60173
847-592-3504
tgallagher@ahma.org

P.R. # AHMA09-02

FOR IMMEDIATE RELEASE

AHMA Home Improvement Industry Confidence Index^SM Shows Weak Current Sales, High Future Expectations

Current Situation Index down 41.7 points to 45.8, Future Expectations up 25.9 points to 127.6

Survey Also Finds Manufacturers Mixed on New Administration, Wary of Banking Situation

Schaumburg, Illinois, February 4, 2009 — The AHMA Home Improvement Industry Confidence Index moved in two directions in January, with the Current Situation Index falling 41.7 points to 45.8, and the Future Expectations Index improving 25.9 points to 127.6.

In comparing current sales levels to year-ago levels, 11 percent of respondents said sales were higher in January versus year-ago levels, compared with 21 percent in December. For January, 16 percent reported sales were even, and 73 percent said sales were below year-ago levels.

Looking forward six months, 24 percent of January respondents said they expect sales to be above current levels, up from 16 percent in December. In January, 39 percent of respondents said they expect sales to be even in six months and 36 percent expect sales to be below current levels.

Looking forward one year, 50 percent of respondents project sales will be higher, up from 43 percent who felt that way in December. Thirty-five percent of January respondents project sales will be even one year from now and 15 percent project sales will be below current levels.

Timothy S. Farrell, President and CEO of the American Hardware Manufacturers Association (AHMA), said: “With just 11 percent of our members reporting sales above year-ago levels, we are keenly aware of the challenges facing our industry and all other industries in the country today. We know from speaking with our members that they are taking proactive measures to emerge as stronger businesses when the current recession comes to an end.”

“It is encouraging to learn from this most recent monthly survey that only 15 percent of our members feel that sales one year from now will be below current levels.” Farrell said.

“Hot Topic” Questions

The January Confidence Index survey asked two additional questions of AHMA members: “How will President Obama’s policies affect your business?” and “How is the current banking situation affecting your business?”

To the first question, on the new administration’s policies, 26 percent responded “positively,” 38 percent responded “no affect,” and 36 percent responded “negatively.”

On the current banking situation, 6 percent responded “positively,” 50 percent responded “no affect,” and 44 percent responded “negatively.”

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 October 2008 as the base reference point so that October 2008 = 100.

The AHMA Home Improvement Industry Confidence Index results are released on the first Wednesday of every month.

Results of the Index survey are viewable online here: http://www.ahma.org/ConfidenceIndex/January2009Results

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 GPOSM, The Hard Fax: Home Improvement Industry News®, The Hard Fax International: Home Improvement Industry News from Around the WorldSM, the AHMA Home Improvement Industry Confidence IndexSM, Government Relations Programs, Member Benefit Vendor Programs, the AHMA Hardware Industry Relief Effort (HIRE) and the AHMA / Habitat for Humanity Partnership.

For more information about AHMA, please visit www.ahma.org.

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