Printer Friendly

GOVERNMENT DATA REVISIONS POINT TO A STRONGER LONG-TERM FORECAST FOR THE HOME IMPROVEMENT PRODUCTS MARKET THAN PREVIOUSLY ESTIMATED

 GOVERNMENT DATA REVISIONS POINT TO A STRONGER LONG-TERM FORECAST FOR
 THE HOME IMPROVEMENT PRODUCTS MARKET THAN PREVIOUSLY ESTIMATED
 LINCOLNSHIRE, Ill., Aug. 12 /PRNewswire/ -- In its most recent report for the Home Improvement Research Institute (HIRI) DRI/McGraw- Hill, utilizing the Census Bureau revisions on retail sales data and revisions to the C5O, provided updated figures on the growth of the home improvement products market.
 Government data revisions result in a revised estimate of total 1991 sales for the home improvement products market to $102.3 billion. As a result of the impact of the data revisions, the consumer portion of the home improvement products market for 1991 totaled $69.7 billion; $1.8 billion higher than originally estimated in March, 1992. By contrast, the complete data for 1991 on Expenditures for Residential Improvement and Repairs (C5O), show a sharp slowdown. Therefore, sales for the professional remodeler market for 1991 are now estimated at $32.6 billion; $3.6 billion lower than originally estimated. These same data revisions show a much stronger market for 1990 than previously stated. The net effect of these adjustments on the total home improvement products market is a decline of 2.6 percent over revised 1990 sales of $105.0 billion with a 0.6 percent increase in the consumer market and an 8.6 percent decrease in sales to the professional.
 The DRI report, however, indicates 1992 and 1993 growth rates are stronger than previously estimated. Recent estimates point toward a growth rate of 8.8 percent for the total home improvement products market for 1992 over 1991 and a 7.0 percent rate of growth for 1993. With a 6.7 percent average five-year growth rate for the total market, sales in 1996 are expected to surpass $141 billion.
 According to projections by DRI, "As hardware and building materials stores continue to lead a recovery of retail sales, the consumer market for home improvement products will grow by 9.1 percent in 1992, compared with 5.1 percent growth projected for total retail sales." An estimated rate of growth of 6.2 percent for the five-year period of 1992-1996 should yield total sales to the consumer of $94.1 billion in 1996.
 On the professional remodeler market the report states that, "Following a slowdown in 1991 that was much steeper than consumer market fundamentals would predict, the professional remodeler market is projected to show gains of 8.2 percent and 10.6 percent over the next two years on the strength of income growth and greater housing market activity." Based on an estimated five-year growth rate of 7.9 percent, sales to the professional remodeler should total $47.7 billion in 1996.
 As sales to the professional market are growing at a rate faster than that of the industry as a whole, the share of the total market accounted for by this segment is expected to increase. In 1991, the professional remodeler segment accounted for 31.9 percent of the total market and will account for 33.6 percent by 1996.
 For the consumer market, merchandise line growth varies. According to the DRI/McGraw-Hill forecasts," ...lumber and building materials are projected to grow faster than the hardware/tools and paint/supplies merchandise lines. Sales in the more discretionary lawn and garden supplies merchandise line declined by 3.4 percent in 1991, but will show the sharpest rebound in 1992 with renewed income growth." 1992 growth rates for lawn and garden equipment and supplies and lumber and building materials are 11.3 percent and 10.9 percent respectively. Average annual growth rates for the five-year period ending 1996 are hardware, tools and plumbing 4.9 percent; paint, preservatives and supplies 5.7 percent; lumber and building materials 6.8 percent; and lawn and garden equipment and supplies 7.0 percent.
 The Home Improvement Research Institute is a non-profit organization of retailers, manufacturers and allied companies in the home improvement market. For more information on these market estimates or other research activities of the HIRI, contact Judith L. Riggs, executive director at 408-662-9584.
 -0- 8/12/92
 /CONTACT: Judith L. Riggs, executive director of Home Improvement Research Institute, 408-662-9584/ CO: Home Improvement Research Institute ST: Illinois IN: REA SU:


LR-KW -- NY063 -- 6254 08/12/92 14:26 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 12, 1992
Words:712
Previous Article:COKE CONSOLIDATED BOARD DECLARES THIRD QUARTER DIVIDEND
Next Article:HOUSING AFFORDABILITY GAINS LINKED TO LOW INTEREST RATES
Topics:


Related Articles
The U.S. national income and product accounts: revised estimates; annual 1986-88 and quarterly 1986:I - 1989:I.
The comprehensive revision of the U.S. national income and product accounts: a review of revisions and major statistical changes.
Annual revision of the U.S. national income and product accounts.
Annual revision of the U.S. national income and product accounts.
Reliability and accuracy of the quarterly estimates of GDP.
Mid-decade strategic review of BEA's economic accounts: maintaining and improving their performance.
LONG-TERM FORECAST PREDICTS GROWTH IN HOME IMPROVEMENT PRODUCT MARKET
Gross domestic product: third quarter 1995 (preliminary). Corporate profits: third quarter 1995 (preliminary). Revised estimates, 1959-95.
Improved estimates of the National Income and Product Accounts for 1959-95: results of the comprehensive revision.
Residential Remodeling Data Series Revised Upward.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters