AMERICAN HARDWARE MANUFACTURERS ASSOCIATION
Terrence V. Gallagher
Manager of Communications
801 North Plaza Drive
Schaumburg, Illinois 60173
P.R. # AHMA11-07
FOR IMMEDIATE RELEASE
June AHMA Confidence Index Shows Future Expectations Improving
Manufacturers also express strong approval of the Jobs and Energy Permitting Act, and support for free trade agreements with Colombia, Panama and South Korea.
Schaumburg, Illinois, July 6, 2011 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index declined in June to 166.7 from 175 in May (October 2008 = 100), while the Future Expectations Index improved significantly to 213.8 from 179.3 a month earlier.
In comparing current sales levels to year-ago levels, 40 percent of respondents said sales were higher in June versus year-ago levels, down from 42 percent in May. For June, 20 percent reported sales were even, and 40 percent said sales were below year-ago levels.
Looking forward six months, 56 percent of June respondents said they expect sales to be above current levels, up from 42 percent in May. In June, 40 percent of respondents said they expect sales to be even in six months and four percent expect sales to be below current levels.
Looking forward one year, 68 percent of respondents project sales will be higher, up from 62 percent who felt that way in May. Twenty-eight percent of June respondents project sales will be even one year from now and four percent project sales will be below current levels.
Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said: “Manufacturers in the home improvement industry continue to perform well in the face of strong macroeconomic headwinds. Going forward, we urge legislators in Washington to fully consider the important contributions to the health of the U.S. economy provided by a thriving manufacturing sector, and we strongly urge them to avoid counterproductive tax increases as they debate ways to reduce the budget deficit and address the problems of an increasing national debt.”
“Hot Topic” Questions
The June Confidence Index survey asked two supplemental questions of AHMA members:
“H.R. 2021, The Jobs and Energy Permitting Act, proposes to eliminate red tape, bureaucratic delays and prolonged litigation to obtain permits currently common under the Clean Air Act. Specifically, it would allow for the increased development of domestic energy off the coast of Alaska. Do you support passage of this act?” And: “Governmental action on free trade agreements with Colombia, Panama and South Korea has been postponed at least until July, and perhaps until after the August recess. Are you in favor of enactment of these agreements?”
To the first question, on the Energy Act, 84 percent responded “Yes,” 16 percent responded “Not Sure,” and zero percent responded “No.”
On the free trade agreement, 52 percent responded “Yes,” 44 percent responded “Not Sure,” and four percent responded “No.”
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/June2011Results
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 GPO, the AHMA eAGLE, The Hard Fax: Home Improvement Industry News, The Hard Fax International: Home Improvement Industry News from Around the World, the AHMA Home Improvement Industry Confidence Index, the AHMA Home Improvement Industry Dashboard, 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.