U.S. HVACR average distributor sales in June 2012 were down 1.8%, the first month-over-month decline this year, according to Heating, Airconditioning and Refrigeration Distributors International (HARDI). HARDI's Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report showed declines in five of the seven US regions.
"June numbers were underwhelming, a likely correction for the strong May and unseasonably early heat in 2012," said HARDI Economist Andrew Duguay. "Members reported a 1.8% decline in sales versus last June on average. The weak June should be taken into context of the strong May and sales are still up 3.5% on average over the past year. The Southwest continues to be the best performing region over the past 12 months, up 10.6%, but June came in flat (-0.2%) versus last June."
Days Sales Outstanding (a measure of how quickly customers pay their bills) declined for the second consecutive month, making it the third decline in the last ten months. Distributor productivity reflected by sales per employee continued its third consecutive month of growth by exceeding May's figures by another 6%.
"The roller coaster that is 2012 continues," said HARDI Executive Vice President and COO Talbot Gee. "May's eye-popping numbers have been tempered by June's modest decline, and I expect yet another reversal when we likely see strong July numbers."
Gee added, "It is, however, time to consider the potential for 'election paralysis' until November's outcome provides some general direction to business owners and homeowners as to what the economic and tax environment is likely to be next year."
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