AHMA Index: Some things looking up

The American Hardware Manufacturers Association’s (AHMA's) Home Improvement Industry Current Situation Index improved in August, according to data from the Schaumburg, Ill.-based industry association.

The index was 91.7 points, up 20.9 from 70.8 in July, marking the highest level since the launch of the survey in October of last year.

However, the Future Expectations Index for August was 170.7, down 13.8 points from 184.5 in July.

Both indexes are based on 100.0 in October 2008.

“It is very encouraging to see an increasing percentage of our members reporting current sales levels improving versus year-ago levels,” said AHMA president ant CEO Tim Farrell. “However, with 68% still reporting sales below last year, we realize that the hardware/home improvement industry still has a long way to go before it fully recovers from the current worldwide recession.”

Farrell also said that with recent reports of existing-home sales up 7% in July and new homes up nearly 10%, there might be hope that the market may be improving.

In comparing current sales levels with year-ago levels, 22% of respondents said sales were higher in August versus year-ago levels, compared with 17% in July. For August, 10% reported sales were even, and 68% said sales were below year-ago levels, down from 73% in July.

The AHMA also surveyed members on hot topics:

• On the question of healthcare reform, 10% responded “in favor” of "a government-funded and controlled ‘public option’ being created to compete with private insurers," 17% responded “not sure,” and 73% responded “opposed.” • On the question of whether a ‘Buy American’ provision in the stimulus bill would positively affect their business, 24% responded “yes,” 27% responded “not sure,” and 49% responded “no.”