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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. # AHMA10-14

FOR IMMEDIATE RELEASE

June AHMA Confidence Index Shows Current Sales Levels Up, Expectations for Future Sales Declining

Manufacturers also express concerns about new climate and energy legislation and mixed opinions on the handling of the General McChrystal replacement.

Schaumburg, Illinois, July 7, 2010 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved in June to 283.3 from 258.3 in May (October 2008 = 100), while the Future Expectations Index fell slightly to 248.3 from 260.3 a month earlier.  The Current Situation Index reflects an all-time high reading for the monthly survey.

In comparing current sales levels to year-ago levels, 68 percent of respondents said sales were higher in June versus year-ago levels, up from 62 percent in May.  For June, 22 percent reported sales were even, and 10 percent said sales were below year-ago levels.

Looking forward six months, 66 percent of June respondents said they expect sales to be above current levels, down from 69 percent in May.  In June, 27 percent of respondents said they expect sales to be even in six months and just seven percent expect sales to be below current levels.

Looking forward one year, 78 percent of respondents project sales will be higher, down from 82 percent who felt that way in May.  Seventeen percent of June respondents project sales will be even one year from now and five 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 it is encouraging to see 68 percent of the respondents to our member survey report higher sales in June versus year-ago levels, we remain cautious about the prospects for a strong economic environment as we head into the second half of 2010.  Specifically, for example, reports released in late June showing pending home sales down 30 percent and new home sales at record low levels, combined with continuing high unemployment levels in the country, lead us to believe that we still have a long way to go before the home improvement industry can confidently expect expansion going forward.”

“Hot Topic” Questions

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

“Do you think it is right for the Obama administration to use the Gulf oil spill as motivation to push for new climate and energy legislation?” and “Do you approve or disapprove of the manner in which President Obama handled the resignation of General Stanley McChrystal as commander of the U.S. forces in Afghanistan?”

To the first question, on the Gulf oil spill, 24 percent responded “Yes,” 12 percent responded “Not Sure,” and 63 percent responded “No.”

On the McChrystal replacement, 41 percent responded “Approve,” 22 percent responded “Not Sure,” and 37percent responded “Disapprove.”

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/June2010Results    

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.

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