56% of ProDealers Report Increased Sales in Q2 2017
Originally published by: Blue Tarp Financial — September 8, 2017
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BlueTarp Financial released today its Q2 2017 Building Supply Index. The Q2 2017 index value rose to 131.04 from 119.98 in Q2 2016 the most notable increase to-date.
To interpret the index, values below 100 reflect recessionary or recovering performance. Values above 100 reflect healthy economic activity.
While construction and contractor spend along with building permits saw a slight increase from Q2 2016 to Q2 2017, consumer confidence was the biggest driver rising 25%. This pushed the second quarter’s index level to an all-time high.
As a supplement to the Building Supply Index, BlueTarp conducts a quarterly survey of its contractors to gauge sentiment on the current and future state of the economy. In Q2 2017, 56% of dealers reported somewhat or significantly higher sales this year versus 17% that reported a decline – a net of 39%. Respondents attributed the spike to high consumer confidence, leading to more spending.
“This quarter’s index is the highest we’ve had and driven by the optimism seen in consumer confidence,” said Scott Simpson, president and CEO of BlueTarp. “Delinquency levels, however, remain elevated so dealers would be wise not to confuse optimistic sentiment with thinking credit risk exposure is low”
The report represents trends from 120,000 pro customers and more than 2,000 building material suppliers across the United States. It also incorporates macro-economic drivers including: building permits, construction spend and consumer confidence as reported monthly by the Census Bureau and The Conference Board.