No one is calling it breakout growth, but the housing market is picking up, and along with it comes spending on home improvement.
That’s one of the broad strokes from the latest “Size of Market” study from the Home Improvement Research Institute. The study, executed by IHS Economics, estimated the total home improvement product universe up 4.5% for the year. The major home center chains were running higher than that figure, but the other channels of distribution lagged — paint and wallpaper stores, lawn and garden, equipment and supply stores, and appliance stores, among them.
Meanwhile, after an anemic 1% growth in the final quarter of 2015, the economists behind the “Size of Market” study expect the economy to “get back on track” in the first half of 2016 (notwithstanding the stock market, which will do what it will do). Expectations for real GDP are in for 3.0% growth in the second quarter. The story there is solid gains in sales to domestic purchasers and weak export demand, combined with a slowdown in investment in inventories.
What’s this mean for the size of the home improvement market? Mostly positive — the pace of growth of home improvement products sales is expected to increase 4.7% in 2016, reaching $333.5 billion.
Read the entire article courtesy of HBS Dealer:
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