ASA Distributor Members Report a Flat Month in Sales for May

May was a relatively flat month for many of the respondents, Sales increased 1% on a month-to-month basis (May vs. April 2024). Year-to-date sales through May 31, 2024 vs. 2023 dipped -0.2% but trailing twelve months sales remained in positive territory with growth of 0.4%. Inventory contracted -0.4% for May 2024 vs. May 2023. The median Three-Months Average Days Sales Outstanding improved to 41 days for May.
 

Industrial PVF:
By primary business emphasis, the Industrial PVF firms reported that year over-year monthly sales declined by 0.1%. PHCP reported a sales increase of 0.7% and PHCP & PVF firms reported a sales decrease of 1.6%. All respondents overall reported a median sales decline of -0.1% for May 2024 vs. 2023.
 

Economic Indicators:
The advance "Real" GDP growth figure for the 1st quarter 2024 was revised downward from a soft 1.6% to an even softer 1.3%. Total wholesale sales for April increased 1.4% year-over-year, while inventories decreased -1.7% vs. the prior year. The growth in "Real" wholesale sales came in at 1.5%--continuing the recent signs of inflation softening and that we remain in a disinflationary period. Housing starts dropped significantly and permits reported its’ third consecutive monthly decline. Even with this softening, year to-date single family starts and permits are both up vs. 2023. Multi-family is down significantly year- over-year. The unemployment rate for May increased to 4.0%.
 

What ASA members are saying:
“Business was modestly better than expected in May. Not setting the world on fire but is looking modestly better than the very start of the year.”
 

“May was indicative of the year - up and down. It was a slower month than we projected but we believe weather played a significant role.”
 

“May was our first down month versus our 2023 results, which we will watch closely in June to ensure that this was just a blip in the screen, rather than the beginning of a trend for the remainder of 2024.”
 

“Our customers are saying they are not as busy, our business is flat. We are in a great position to grow geographically. Looking to do some of that.”
 

“Staying steady.”
 

“Sales are soft, staffing is difficult. If the government would get their spending under control our economy would be much better! Inflation has a huge effect on the overall health of the country!”