“July was the second month this year when sales growth was in the 10% area,” said Brian Loftus, HARDI’s macroeconomic and residential market analyst. “Just like the last time we achieved double-digit sales growth, the strong sales growth during July 2024 was due to two extra billing days. We estimate sales were about flat year-to-year with the same number of billing days.”

The Days Sales Outstanding, a measure of how quickly customers pay their bills, was 37 days during July.  “June and July are the seasonal lows for DSO, but 37 is a new record,” said Loftus. “The DSO for July was near 40 the past few years. Maybe this brisk cycle is reflecting the modest pace of activity instead of financial stability.

“It is encouraging to see the annual growth rate holding onto the recent gains,” Loftus continued. “After the recent encouraging GDP growth report and retail sales reports, and then the rate-cutting cycle beginning next week, we expect the annual growth rate recovery for HARDI distributors to continue during the balance of 2024.”

HARDI members do not receive financial compensation in exchange for their monthly sales data and can discontinue 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 sales information about products not directly associated with the HVACR industry.