Market Insights

Consumer spending for June dropped 0.2% to $21.9 billion, the Commerce Department announced Tuesday. 

The drop in consumer spending marked the first decline seen since September 2009.

Meanwhile, personal income was virtually flat, increasing 0.1% to $18.7 billion for the month, which was in line with estimates.

The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved in May to 312.5 from 308.3 in April (October 2008 = 100), while the Future Expectations Index fell to 229.3 from 239.7.

In comparing current sales levels with year-ago levels, 75% of respondents said sales were higher in May versus year-ago levels, up from 74% in April. For May, 12% reported sales were even, and 12% said sales were below year-ago levels.

Regarding Department of Labor Wage and Hour Compliance, Be Careful What You Wish For

Nationwide housing starts rose 14.6% to a seasonally adjusted annual rate of 629,000 units in June, according to the latest residential construction report from the U.S. Commerce Department. This was the highest pace of housing production since the beginning of the year, and was attributable to significant gains registered in both the single-family and multi-family segments, as well as every region of the country.

A Home Improvement Research Institute study anticipates steady sales growth.

The Interim Report on the Economic Outlook and the Home Improvement Products Market for May 2011 lowered some forecasts for key metrics, raised others and maintained its core forecast.

The report, conducted for the Home Improvement Research Institute by IHS Global Insight, downwardly revised its 2011 housing starts forecast to 630,000. The February forecast had called for 680,000 starts in 2011. The 2012 forecast was also lowered from 1.10 million to 1.02 million.

Key factors driving growth for the category include a growing construction industry.

The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved in May to 175 from 166.7 in April (October 2008 = 100), while the Future Expectations Index declined to 179.3 from 231 a month earlier.