BUILDER sibling ProSales reports that an index of building supply economic activity continues rising, but so do late payments.
Strong economics and optimistic customers helped drive BlueTarp Financial'sBuilding Supply Index to record heights in the second quarter, the credit management company announced today. But it also noted that delinquencies of 60 days or more among the roughly 120,000 pro contractors it tracks at 2,000 LBM operations nationwide have risen 16% since the summer of 2017.
The index--based on public data such as consumer sentiment, building permits, and construction spending, along with proprietary data--hit a record 139.16, while the trailing 12-month average for this seasonally volatile index jumped to 132.48 from 130.91 in the first quarter. A value above 100 reflects healthy economic activity.
Courtesy of BlueTarpConsumer confidence is a big driver, as optimism about the U.S. economy has risen 7% year-over-year. But pros aren't far behind, as roughly three times as many respondents to a BlueTarp survey said in the second quarter that they were expecting more growth as opposed to a decline. More than half of the respondents said sales are up compared with this time last year.