AMERICAN HARDWARE MANUFACTURERS ASSOCIATION
Terrence V. Gallagher
Manager of Communications
801 North Plaza Drive
Schaumburg, Illinois 60173
P.R. # AHMA14-08
FOR IMMEDIATE RELEASE
AHMA Confidence Index Holds Steady in May
Manufacturers also indicate doubts on Sears retail strategy and support for trade relations with BRIC countries.
Schaumburg, Illinois, June 4, 2014 — The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index remained unchanged at 320.8 in May (May 2008 = 100), while the Future Expectations Index improved to 265.5 from 215.5 in April.
In comparing current sales levels to year-ago levels, 77 percent of respondents said sales were higher in May versus year-ago levels, the same as in April. For May, 18 percent reported sales were even, and five percent said sales were below year-ago levels.
Looking forward six months, 81 percent of May respondents said they expect sales to be above current levels, up from 57 percent in April. In May, 19 percent of respondents said they expect sales to be even in six months and zero percent expect sales to be below current levels.
Looking forward one year, 73 percent of respondents project sales will be higher, up from 68 percent who felt that way in April. Twenty-seven percent of May respondents project sales will be even one year from now and zero percent project sales will be below current levels.
Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said: “It is encouraging that May’s survey shows 77 percent of respondents reporting sales higher than year-ago levels, maintaining the high level attained in April. It is also encouraging to find 81% and 73% of respondents, respectively, expecting higher sales six months and one year from now. Barring unforeseen negative macroeconomic developments, we expect 2014 to continue to be a strong year for the home improvement industry.”
“Hot Topic” Questions
The May Confidence Index survey asked two supplemental questions of AHMA members:
“Sears recently reported a loss of $402 million for the first quarter. The company says it is ‘moving away from a company that was heavily based on selling products solely through a store-based network to a member-centric business model focused on providing benefits to our members anytime and anyplace.’ Do you think the company will be successful in this transformation?” and “How important is it to your business that our trade relations with the BRIC countries (Brazil, Russia, India and China) remain stable?”
To the first question, on the Sears strategy, zero percent responded “Yes,” 64 percent responded “Not Sure,” and 36 percent responded “No.”
On the trade question, 32 percent responded “Very important,” 50 percent responded “Somewhat important,” and 18 percent responded “Not important.”
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 May 2008 as the base reference point so that May 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.