Hardwood Floors December 2024/January 2025

Market Matters (Continued) o Federal debt will exceed $34 trillion for the U.S. by the end of 202 interest on this debt ($800 billion per annum) will be nearly equal annual defense spending budget for the same year ($849 billion). debt will continue to rise, and payments on this rising debt will abs of the federal budget. o Slowing employment growth will stymie economic growth. In 20 percent of hiring was by government and 39 percent by quasi-gov education and health care sectors, leaving 36 percent of new jobs (=974,000 new jobs for the full year or 81,000 jobs per month) bei in the private sector. o Other potential threats to the U.S. economy include a widening the Ukraine or Middle East, new conflicts in Taiwan, the Persian G other areas; a major domestic civil disturbance; another global pa major trade war threatening prices and logistical trains; or or other catastrophe. The Index of Leading U.S. Economic Indicators are predicting a downturn. Figure 2 The Index of Leading U.S. Economic Indicators are predicting a downturn. ADOBESTOCK ©

purchasing priorities of affected households.

• Deficit spending will weaken the U.S. dollar by increasing the money stock, raising the federal debt, and put upward pressure on inflation. • Federal debt will exceed $34 trillion for the U.S. by the end of 2024, and the interest on this debt ($800 billion per annum) will be nearly equal to the U.S. annual defense spending budget for the same year ($849 billion). Federal debt will continue to rise, and payments on this rising debt will absorb more of the federal budget. • Slowing employment growth will stymie economic growth. In 2023, 25 percent of hiring was by government and 39 percent by quasi-government education and health care sectors, leaving 36 percent of new jobs (=974,000 new jobs for the full year or 81,000 jobs per month) being created in the private sector. • Other potential threats to the U.S. economy include a widening war in Ukraine or the Middle East, new conflicts in Taiwan, the Persian Gulf, or other areas; a major domestic civil disturbance; another global pandemic; a major trade war threatening prices and logistical trains; or other catastrophe. 24 hardwood floors hardwoodfloorsmag.com

% CHANGE IN INDEX OF LEADING U.S. ECONOMIC INDICATORS

15.0%

10.0%

5.0%

0.0%

% Change

-5.0%

(curr. vs qtr. last year)

-10.0%

2020/Q1

2020/Q2

2020/Q3

2020/Q4

2021/Q1

2021/Q2

2021/Q3

2021/Q4

2022/Q1

2022/Q2

2022/Q3

2022/Q4

2023/Q1

2023/Q2

2023/Q3

2023/Q4

% Change in Index current quarter versus same quarter prior year Composite index of 11 factors that forecast the business cycles of the U.S. economy Santo Torcivia is president of Market Insights LLC in Reading, Pennsylvania. He can be reached at 610.927.2299 or storcivia@marketinsightsllc.com. % Change in Index current quarter versus same quarter prior year Composite index of 11 factors that forecast the business cycles of the U.S. economy FIGURE 2

This is a summary of the September 2024 Quarterly Market Monitor Report publish Insights LLC. NWFA members have exclusive access to the full report, which provi and analysis of economic, market, and industry conditions and trends affecting the American flooring market. The report includes a historical and forecasted volume o of total wood flooring (at mill sell price) per metro area and state. Separate reports for the United States and for Canada. The availability of the reports on a quarterly b provide NWFA members with current data that can help them develop business pla inventory, and react to market conditions in a timely manner. NWFA members may the full report by visiting nwfa.org. This is a summary of the September 2024 Quarterly Market Monitor Report published by Market Insights LLC. NWFA members have exclusive access to the full report, which provides forecasts and analysis of economic, market, and industry conditions and trends affecting the North American flooring market. The report includes a historical and forecasted volume of dollar sales of total wood flooring (at mill sell price) per metro area and state. Separate reports are available for the United States and for Canada. The availability of the reports on a quarterly basis will provide NWFA members with current data that can help them develop business plans, prioritize inventory, and react to market conditions in a timely manner. NWFA members may download the full report by visiting nwfa.org.