AMERICAN HARDWARE MANUFACTURERS ASSOCIATION
Terrence V. Gallagher
Manager of Communications
801 North Plaza Drive
Schaumburg, Illinois 60173
P.R. # AHMA12-10
FOR IMMEDIATE RELEASE
AHMA Confidence Index Improves Slightly in August
Manufacturers also report doubts on new export prospects to Russia and the need for more economic stimulus.
Schaumburg, Illinois, September 5, 2012 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved in August to 279.2 from 262.5 in July (October 2008 = 100), while the Future Expectations Index also increased slightly to 212.1 from 210.3.
In comparing current sales levels to year-ago levels, 67 percent of respondents said sales were higher in August versus year-ago levels, up from 63 percent in July. For August, 26 percent reported sales were even, and seven percent said sales were below year-ago levels.
Looking forward six months, 56 percent of August respondents said they expect sales to be above current levels, up from 44 percent in July. In August, 33 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, 67 percent of respondents project sales will be higher, down from 78 percent who felt that way in July. Twenty-six percent of August respondents project sales will be even one year from now and seven percent project sales will be below current levels.
Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said: “With 67 percent of our members reporting August sales higher than year-ago levels, we remain confident that the home improvement industry will continue to perform well even in the face of the overall economy’s challenging macroeconomic headwinds. We are also encouraged to see positive momentum in the housing sector of the industry with both existing and new home sales beginning to rise.”
“Hot Topic” Questions
The August Confidence Index survey asked two supplemental questions of AHMA members:
“Russia has recently been accepted as a member of the World Trade Organization. Do you feel this will help U.S. manufacturers export more products to Russia?” and “Reports in the Wall Street Journal and elsewhere say the Federal Reserve is considering new actions to boost the economy. Do you think more economic stimulus is needed?”
To the first question, on trade with Russia, 22 percent responded “Yes,” 44 percent responded “Not Sure,” and 33 percent responded “No.”
On the need for more economic stimulus, 31 percent responded “Yes,” 12 percent responded “Not Sure,” and 58 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/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.
For more information about AHMA, please visit www.ahma.org.