Metrostudy, a Hanley Wood company, on Wednesday released its first quarter 2018 New Pool Index (NPI), detailing activity in the new in-ground pool installation industry, which was up.
The first quarter New Pool Index measured a reading of 48.0, up 9.2% from one year earlier and up 2.3% from the previous quarter. First quarter’s year-over-year gain was the strongest rate observed since first quarter 2014, while quarter-to-quarter growth was the highest since third quarter 2013. The NPI is forecast to average annual growth of 9.3% in 2018, before growth begins to moderate in 2019.
“First quarter measures of the New Pool Index were very positive, but the pool industry was somewhat restrained in first quarter 2018 due to inclement weather in seasonal markets, creating some backlog that will be deferred to second quarter” said Mark Boud, chief economist at Metrostudy. “Overall, pool construction and maintenance continues to improve in-line with performance in the broader home remodeling market, which is riding high on strong employment growth and increasing home values. We expect steady improvement in new pool activity in 2018, with renovation and repair continuing to capture a large portion of business. We’ll be watching closely to see if recent tax cuts inject a boost to spending on pools in the near term.”
Metrostudy produces the NPI to provide the industry visibility into local market pool activity, forecast future activity, and potential demand. According to the company’s first quarter report, 320 Metropolitan Statistical Areas are expected to see year-over-year growth in new pool projects in 2018, with average growth of 8.2%.
