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Latest Retail Sales Report Indicates Continuing Strength of Construction Market, Despite Dip From May Sales

by Freedonia Industry Studies

July 27, 2021

The most recent retail sales report for June 2021 revealed another month of strong sales for building materials and garden equipment and supplies distributors. While on a month-to-month basis retail sales in the category posted a modest decline from May, compared to last year at this time, sales of building materials and garden equipment and supplies were up more than 18%.

A number of factors supported sales of building materials and related products in June 2020, key among them:

  • continuing high levels of new home building activity
  • strong homeowner interest in home improvement projects
  • a retreat in lumber prices that encouraged those who had postponed projects due to the high cost of lumber to undertake them once again
  • favorable weather conditions that encouraged homeowners to work in their yards, which boosts sales of garden products, or engage in outdoor activities – promoting sales of such items as swimming pools and toys and games

Summer is traditionally a strong season for building materials and garden equipment and supplies retailers, and it is anticipated that sales in this market segment will remain robust going forward. Indeed, the prospect of continuing declines in lumber prices and increasing consumer confidence is expected to spur retail sales in this segment for the rest of the year. Freedonia experts will continue to monitor retail sales in this category  – and others – to see how this affects the US economy as a whole.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia Custom Research is also available for questions requiring tailored market intelligence.

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