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News & Press: HIRI News

HIRI/IHS Economics up 4.4% in 2015, Expecting 4.4% sales growth in 2016 and beyond

Tuesday, September 29, 2015   (0 Comments)
Posted by: Christina Sacher Brown

Total home improvement products sales are expected to increase 4.4% in 2015 to $318 billion. The Professional Market will increase 4.3% in 2015 over 2014 and the Consumer Market will see a sales increase of 4.5%.

We continue to expect home improvement product sales growth to accelerate over the next two years with 2016 forecasted to increase another 4.4% over 2015.


The National Economic Outlook


·         Following a weak first quarter, real GDP in the second quarter was revised up to show a 3.7% gain. We do not expect this pace to be sustained in the second half of 2015. Full-year growth is now pegged at 2.3% – below expectations at the beginning of the year. 

·         The factors holding real GDP growth back this year, however, are less directly related to the health of the home improvement products market.  These include a sharp decline in energy-related investment, a growing trade imbalance, and an expected reversal of the contribution of inventory change to GDP in the second half.

·         The consumer spending outlook remains relatively bright, supported by solid gains in employment and real disposable income. We expect real consumer spending to improve from 2.7% in 2014 to 3.0% this year and 3.1% in 2016. 

·         Both home building and existing home sales continue to show some strength but have yet to accelerate as expected in our March home improvement products forecast. We now project existing home sales to be up 7.8% in 2015 and housing starts to increase by 11.5%.



Growth rates of market size by segment for the current year and 5-year historical and forecast periods are as follows: 






Current prices:




Consumer Market




Professional Market