“This impressive sales growth was helped by an extra billing day versus the prior year and very easy comparisons in four of the regions,” said HARDI Market Research and Benchmarking Analyst Brian Loftus. “With the same number of billing days, we estimate the monthly sales growth rate would have been closer to 16.5 percent.  Either way, the average annual sales growth is 12.6 percent and that is a new record for any twelve month period.”

The days sales outstanding (DSO), a measure of how quickly customers pay their bills, is back below 48 days. “The days outstanding were increasing earlier this year,” said Loftus. “Customers needing more time to pay their bills is an early indicator of a weaker economy.  The past two months are back to within normal range for this time of year.”

The peak months of the year for equipment sales are May through August. April is the start of the second quarter, when 30 percent of annual equipment units will be sold. "This report is a great start to the busy season,” said Loftus.  “We are concerned about the yield curve nearly inverted, industrial production slowing, and very weak existing home sales.  This record setting annual sales growth rate reflects 100-plus consecutive months of job growth and the resulting consumer and business confidence.”

Publication date: 6/6/2019

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