The U.S. economy dragged down the remodeling industry in the latest quarter, according to the latest National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The index dropped to 41.7 in the third quarter of 2011 from 43.9 in 2Q and after reaching a four-year high of 46.5 in 1Q 2011. An RMI below 50 indicates that more remodelers report that market activity is declining than report that it is increasing.
"Remodelers report that while many consumers show interest in having remodeling work done, they are slow to commit to projects,” said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, CO. “Consumers are in a ‘wait and see’ mode with regard to current economic conditions.”
The overall RMI combines ratings of remodeling activity currently with indicators of future activity, such as calls for bids.
Current Market Conditions: In 3Q 2011 the RMI current market conditions component was: 43.0, down from 44.8 in 2Q 2011.
All three components measuring Current Market Conditions decreased in the third quarter:
• Major Additions: 45.2 in 3Q 2011, down from 46.2 in 2Q 2011
• Minor Additions: 45.7 in 3Q 2011, down from 48.5 in 2Q 2011
• Maintenance and Repair: 37.1 in 3Q 2011, down from 38.4 in 2Q 2011.
Future Indicators: The RMI component measuring future indicators of remodeling business: 40.4 in 3Q 2011, down from 43.0 in 2Q 2011.
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