“Improving consumer spending trends and additional gains in residential construction continue to support HARDI member sales,” observed Andrew Duguay, HARDI senior economist. “Despite the reinstated payroll taxes this year, the consumer is still shopping aggressively. Retail sales in the second quarter experienced the highest year-over-year growth rate in more than a year.”
According to Brian Loftus, HARDI market research and benchmarking analyst, rising retail sales have historically correlated well with HARDI member sales.
“The strong consumer confidence is reflected in business confidence as HARDI member customers are paying their bills a little quicker than last year,” he said. “The Days Sales Outstanding, a measure of how quickly customers pay their bills, typically declines this time of year, and is now lower than June 2012 despite the higher level of sales activity.”
Loftus explained that June and July are often the peak seasons of the year.
“Each month is responsible for roughly 11 percent of annual sales,” he pointed out. “July’s results will be pivotal for the 2013 annual growth due to this seasonal significance and the comparison to very strong results experienced during July 2012.
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