“This was the second consecutive month when the average monthly sales performance was a decline,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “We have not had back-to-back declines since battling the remnants of the last recession in early 2010.  The decline is understandable given the challenges in June. All the regions had one less billing day than the prior year.  Five of the regions had fewer cooling degree days than June 2018.  And the heavy rain from May persisted into June in parts of the Southwest and Southeast.”

The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, continued to be unusually low for this time of year.

“Typically the DSO increases during the second calendar quarter as cooling season gets rolling,” said Loftus.  “That was not the case this year with soft sales that have been paid promptly.”

“We see softer end market demand from the housing market with declining existing home sales and relatively flat housing permits,” said Loftus, “but the underlying economy appears very healthy.” 

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