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The Heating, Airconditioning and Refrigeration Distributors International’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) report showed declines in five of the association’s seven regions. It was the first month-over-month decline this year.
“June numbers were underwhelming, a likely correction for the strong May and unseasonably early heat in 2012,” said HARDI economist Andrew Duguay. “The weak June should be taken into context of the strong May and sales are still up 3.5 percent on average over the past year. The Southwest continues to be the best performing region over the past 12 months, up 10.6 percent, but June came in flat versus last June.”
Days sales outstanding - which measures how quickly customers pay bills - declined for the second consecutive month, the third drop in the last 10 months. Distributor productivity, reflected by sales per employee, grew for a third month, exceeding May’s figures by another 6 percent.
“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.
“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,” Gee said.