“After the flat sales during 2023, it looks like we are off to a good start with 9% sales growth during January and 7.7% during February,” said Brian Loftus, HARDI’s macroeconomic and residential market analyst. “The sales growth during February had the benefit of one more billing day than February of 2023. With the same number of billing days we estimate the sales growth for the month would have been closer to 2.6%.”

The Days Sales Outstanding, a measure of how quickly customers pay their bills, was near 42 days during February.

“Forty-two this month was comparable to February of 2022 and better than 43 the previous two years,” said Loftus. “Eleven fed fund rate increases have not been able to subdue GDP growth or job growth or dealers’ bill-paying ability.

“The TRENDS annual growth rate line has been resistant to break below zero and it may not need to,” Loftus continued. “The economy has been resilient while interest rates were increasing and now rates are turning lower and the housing market is showing signs of life.”

HARDI members do not receive financial compensation in exchange for their monthly sales data and can discontinue their participation without prior notice or penalty. Participation is voluntary, and the depth of market coverage varies from region to region. An independent entity collects and compiles the data, which can include information about products not directly associated with the HVACR industry.