Hardwood Floors June/July 2024

Market Matters (Continued)

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).

ADOBESTOCK ©

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

U.S. CALCULATED RESULTS - 2023

15.0%

YTD Calc. % Chg. (2022-23)

Product Categories

(@12/31)

10.0%

Carpet & Rugs Ceramic Tile

-7.3% -7.3%

5.0%

Laminate Flooring Resilient Flooring

-10.2% -11.9% -13.3%

Wood Flooring

0.0%

% Change

Total Flooring

-9.3%

-5.0%

Source: US ITC import & export reports, Federal Reserve Production Index/Carpet & Rugs, & Market Insights LLC research.

(curr. vs qtr. last year)

-10.0%

This is a summary of the March 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.

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

Source: % 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.

• Slowing employment growth will stymie economic growth. In 2023, 25 percent of hiring was by the government and 39 percent by quasi-government education and healthcare sectors, leaving 36 percent of new jobs being created in the private sector. • Other potential threats to the U.S. economy include a widening war in the Ukraine or Middle East, new conflicts in Taiwan, the Persian Gulf, or other areas, a major domestic civil disturbance, another global pandemic, or a major trade war threatening prices and logistical trains. • An index of leading U.S. economic indicators are predicting a downturn. Santo Torcivia is president of Market Insights LLC in Reading, Pennsylvania. He can be reached at 610.927.2299 or storcivia@marketinsightsllc.com.

• Deficit spending to finance tuition forgiveness, Ukraine and Middle East wars, and humanitarian aid will weaken the U.S. dollar. • 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).

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