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

P.R. # AHMA12-02

FOR IMMEDIATE RELEASE

AHMA Confidence Index Improved in January

Manufacturers also expressed dissatisfaction with administration efforts to make American manufacturers more competitive and doubts about the “state of the union” getting stronger.

Schaumburg, Illinois, February 8, 2012 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved in January to 237.5 from 229.2 in December (January 2008 = 100), while the Future Expectations Index fell to 218.9 from 241.4.

In comparing current sales levels to year-ago levels, 57 percent of respondents said sales were higher in January versus year-ago levels, up from 55 percent in December.  For January, 26 percent reported sales were even, and 17 percent said sales were below year-ago levels.

Looking forward six months, 57 percent of January respondents said they expect sales to be above current levels, down from 60 percent in December.  In January, 30 percent of respondents said they expect sales to be even in six months and 13 percent expect sales to be below current levels.

Looking forward one year, 70 percent of respondents project sales will be higher, down from 80 percent who felt that way in December.  Seventeen percent of January respondents project sales will be even one year from now and 13 percent project sales will be below current levels.

Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said:  “While most of our members are reporting higher sales versus year ago levels, there remains a strong feeling that the pace of the economic recovery is not progressing as quickly as it would under a more ‘business-friendly’ administration in Washington.  Along with our members, we hope pro-manufacturing initiatives mentioned by the President in his State of the Union address move from rhetoric to reality going forward.”

“Hot Topic” Questions

The January Confidence Index survey asked two supplemental questions of AHMA members:

“In his recent State of the Union address, President Obama spoke of the need to ‘revive manufacturing’ in America.  Do you believe the administration is doing all that it could to help make American manufacturers more competitive in the world marketplace?” and “Also in the State of the Union address, President Obama said the economy is growing and the ‘state of our union is getting stronger.’ Do you agree with this statement?”

To the first question, on competition in the world marketplace, 100 percent responded “No,” zero percent responded “Not Sure,” and zero percent responded “Yes.”

On the state of the union getting stronger, 25 percent responded “Yes,” 21 percent responded “Not Sure,” and 54 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 January 2008 as the base reference point so that January 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/CurrentResults    

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 Home Improvement Industry Confidence Index, the AHMA Home Improvement Industry Dashboard, AHMA Home Improvement Industry Stocks, the AHMA Home Improvement Industry Calendar, the AHMA Home Improvement Industry Network on LinkedIn, AHMA News on Twitter, Government Relations Programs, Member Benefit Vendor Programs, the AHMA Hardware Industry Relief Effort (HIRE) and the AHMA / Habitat for Humanity Partnership.

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