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06/26/2017

June Report Sees Strong Sales & Growth Pattern

Industry Trends Report

NAHAD’s June Industry Trends Report highlights continued improvement in underlying trends, with strong sales growth driven by broad-based end market strength. Double-digit order growth along with tailwinds from price realization and inventory restocking are supportive of the increased full year outlook.
 
On an adjusted basis, sales were up ~10% in both May and April. Before adjusting for selling days, May growth was 12% (helped by an extra day) and April growth was 6% (~1.5 fewer days). Orders remain strong with an increase of 15% in May following 11% in April. Backlogs also improved and were up 14% with a net 40% of contacts reporting a sequential increase, the second largest improvement since 2012.

Distributors and manufacturers have raised their full year outlook for 2017 to up 8% on average, compared to 7% last month and up from an initial outlook of 3%. This follows a decline of ~5% in 2016.

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