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. # AHMA10-04

FOR IMMEDIATE RELEASE

January AHMA Confidence Index Shows Current Sales Levels Steady, Expectations for Future Sales Improving

Survey Also Finds Manufacturers Have a Negative Opinion on President’s Performance and Feel Scott Brown’s Election Was a Call for a Change in Direction

Schaumburg, Illinois, February 2, 2010 —The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index declined slightly in January to 100 from 112.5 in December (October 2008 = 100), while the Future Expectations Index improved slightly to 229.3 from 225.9 in December.

In comparing current sales levels to year-ago levels, 24 percent of respondents said sales were higher in January versus year-ago levels, down from 27 percent in December. For January, 46 percent reported sales were even, and 30 percent said sales were below year-ago levels, down significantly from 52 percent in December.

Looking forward six months, 61 percent of January respondents said they expect sales to be above current levels, up from 60 percent in December. In January, 26 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, 72 percent of respondents project sales will be higher, up from 71 percent who felt that way in December. Twenty-three percent of January respondents project sales will be even one year from now and six 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 sales levels for some of our members are beginning to improve slightly, most of them remain frustrated by macroeconomic hurdles, such as high unemployment levels and a stagnant housing market, standing between them and the opportunity for more robust growth.”

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

“President Obama is delivering his first ‘State of the Union’ address this week. After one year, how do you rate the president’s performance?” and “Do you feel the election of Republican Scott Brown in a special election to fill the Massachusetts senate seat of the late Ted Kennedy was a referendum on health reform, and the Obama administration more generally?”

To the first question, on the President’s performance after one year, two percent responded “Positive,” 13 percent responded “Neutral,” and 85 percent responded “Negative.”

On their opinion of the message sent by the Scott Brown election and whether it was a referendum on the Obama administration, 81 percent responded “Yes,” 11 percent responded “Not Sure,” and seven 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 Tuesday 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 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.

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