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. # AHMA10-16

FOR IMMEDIATE RELEASE

August AHMA Confidence Index Declines for Both Current Sales And Future Expectations

Manufacturers also express a 69% disapproval rate regarding the construction of a mosque near Ground Zero and are 73% opposed to an offshore drilling moratorium

Schaumburg, Illinois, September 8, 2010 —The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index declined in August to 191.7 from 241.7 in July (October 2008 = 100), while the Future Expectations Index also fell to 193.1 from 229.3 a month earlier.

In comparing current sales levels to year-ago levels, 46 percent of respondents said sales were higher in August versus year-ago levels, down from 58 percent in July.  For August, 29 percent reported sales were even, and 24 percent said sales were below year-ago levels.

Looking forward six months, 44 percent of August respondents said they expect sales to be above current levels, down from 56 percent in July.  In August, 32 percent of respondents said they expect sales to be even in six months and 24 percent expect sales to be below current levels.

Looking forward one year, 68 percent of respondents project sales will be higher, down from 77 percent who felt that way in July.  Twenty-four 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:  “Our members’ declining confidence in August reflects on the very difficult macroeconomic environment prevalent in the country today.  Recent reports of a downwardly revised GDP for the second quarter, and an increase in the unemployment rate for August to 9.6%, are further indications that we still have a long way to go before robust growth can be expected for most American businesses.”

“Hot Topic” Questions

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

“Do you approve of the construction of the Ground Zero mosque in lower Manhattan?” and “Do you approve or disapprove of the Obama administration’s moratorium on new deepwater offshore drilling?”

To the first question, on the Ground Zero mosque, 17 percent responded “Yes,” 14 percent responded “Not Sure,” and 69 percent responded “No.”

On the moratorium on deepwater drilling, eight percent responded “Approve,” 19 percent responded “Not Sure,” and 73 percent 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/August2010Results    

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.

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