"The pool industry continues to strengthen on job growth and new signs of improving wages," said Mark Boud, Chief Economist at Metrostudy.
WASHINGTON, D.C. (PRWEB) February 21, 2018
Metrostudy, a Hanley Wood company, announced today the release of its fourth quarter 2017 New Pool Index (NPI), detailing activity in the new in-ground pool installation industry.
The New Pool Index continued to climb at the close of 2017. The fourth quarter index increased 9.5 percent from one year earlier and 2.8 percent from the previous quarter to a reading of 47.3. Fourth quarter’s 9.5 percent year-over-year gain was the strongest since a 10.8 percent increase was recorded in the first quarter of 2014. Pool builders are increasingly busy as 2018 begins, despite some disruptions in areas hit by 2017’s hurricanes and wildfires. With the U.S. economy chugging along, the NPI is forecast to see a strong 10.6 percent annual increase at year-end 2018, before growth begins to moderate in 2019.
“The pool industry continues to strengthen on job growth and new signs of improving wages. Private sector wages increased 2.8 percent year-over-year during the final three months of 2017, the fastest rate since the recession, suggesting the long, slow recovery is finally reaching the wallets of Americans,” said Mark Boud, Chief Economist at Metrostudy. “Wage growth will be a large near term factor in spending on pools, especially as some recent correction in the stock market, and expected volatility, reduces investment income. There is sentiment 2018 will finally be a year of sustained wage growth, as the tighter labor market forces companies to pay more to retain and recruit workers. While new pool builders are backlogged heading into 2018, renovation, repair, and maintenance of existing pools will continue to be a big chunk of business within the pool industry, especially in areas impacted by recent natural disasters.”
Metrostudy produces the NPI to provide the industry visibility into local market pool activity, forecasted future activity, and potential demand. According to the company’s fourth quarter report, 320 Metropolitan Statistical Areas are expected to see year-over-year growth in new pool projects in 2018, with average growth of 8.0 percent.
For more information on accessing the full quarterly report, please email Katie Welch at kwelch(at)metrostudy.com.
About the New Pool Index:
The NPI is a quarterly measure of the level of pool installation activity in 381 metropolitan statistical areas (MSA) in the U.S., with the national composite reflecting the national level of activity. On the national level, a number above 100 indicates a level of pool activity higher than the level of activity in 2005, which was the peak of pool installs in the prior decade. Each MSA’s activity index is computed independently based on that market’s pool related data and shows the current level of activity in the specific MSA relative to the MSA’s own history and relative to year 2005.
The index is produced through a statistical model that leverages detailed data on pool installation activity, including household level pool permits, existing pool locations, and survey of planned pool purchases. Quarterly historical results for the national composite and for each of the 381 Metropolitan Statistical Areas in the U.S. are available back to 2004. In addition, Metrostudy also produces annual estimates of pool project counts as well as forecasts of the quarterly index and annual project counts.
Metrostudy is the leading provider of primary and secondary market information to the housing and residential construction industry. Metrostudy’s actionable business intelligence informs investment decisions that mitigate risk and grow revenue for builders, developers, lenders, suppliers, retailers and manufacturers. It’s the construction industry’s only integrated data intelligence solution supported by the most extensive U.S. geographic coverage. Learn more at Metrostudy.com.
About Hanley Wood:
Hanley Wood is the premier company serving the information, media, and marketing needs of the residential, commercial design and construction industry. Utilizing the largest analytics and editorially driven Construction Industry Database, the company provides business intelligence and data-driven services. The company produces award-winning media, both digital and print, high-profile executive events, and strategic marketing solutions. To learn more, visit hanleywood.com.