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

P.R. # AHMA09-18

FOR IMMEDIATE RELEASE

October AHMA Home Improvement Industry Confidence Index^SM
Current Situation Index Stays at 45.8 while Future Expectations Index Rises

Survey Also Finds Manufacturers Generally in Favor of Extending or Expanding the
Home Buyer Tax Credit and Mostly Unsure About Ron Bloom’s Appointment as Manufacturing Czar

Schaumburg, Illinois, November 3, 2009 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index remained at 45.8 in October (the same reading as September), while the Future Expectations Index moved up to an all-time high of 201.7 from 191.4 in September.

In comparing current sales levels to year-ago levels, 11 percent of respondents said sales were higher in October versus year-ago levels, matching the September percentage. For October, 15 percent reported sales were even, and 75 percent said sales were below year-ago levels, up from 72 percent in September.

Looking forward six months, 48 percent of October respondents said they expect sales to be above current levels, up from 44 percent in September. In October, 41 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, 69 percent of respondents project sales will be higher, up from 67 percent who felt that way in September. Twenty-seven percent of October respondents project sales will be even one year from now and just 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: “Clearly, with 75 percent of our manufacturers reporting sales below year-ago levels, the hardware / home improvement industry remains stuck in a recessionary mode. And while the October survey indicates a high degree of optimism looking ahead six and twelve months into the future, the industry remains cautiously and conservatively focused on maintaining tight cost controls while it awaits the recovery of macroeconomic factors such as housing sales, consumer confidence and employment levels.”

“Hot Topic” Questions

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

“The $8,000 first-time home buyer tax credit will expire at the end of November. Many housing industry-related interest groups are urging Congress to extend and expand the credit. Are you in favor of an extension and expansion of the program?” and “President Obama has named Ron Bloom as his senior counselor for manufacturing policy. Are you in favor of this appointment?”

To the first question, on the home buyer tax credit, 45 percent responded “In favor,” 20 percent responded “Not sure,” and 35% percent responded “Opposed.”

On the Ron Bloom question, seven percent responded “In favor,” 61 percent responded “Not sure,” and 31 percent responded “Opposed.”

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 Tuesday of every month.

Results of the Index survey are viewable online here: http://www.ahma.org/ConfidenceIndex/October2009Results

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 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, 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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