US Home Improvement Spending Dips 1% in April, BofA Reports

Key Highlights

Bank of America's latest card spending data for April reveals a divergence in consumer behavior. While overall household spending rose 4.8% year-over-year, spending at home improvement retailers, a key indicator for do-it-yourself projects, saw a 1% decline.

Overall Spending Landscape

The report, based on aggregated credit and debit card data, showed a 0.6% month-over-month seasonally adjusted increase in total card spending per household. Spending on housing-related services, a proxy for professional contractor work, grew 4% year-over-year. This reflects a slowdown from 7% growth in March but remains 59% above pre-pandemic April 2019 levels. In contrast, DIY spending fell 1% year-over-year, though it still stands 14% higher than in April 2019.

Sector-Specific Performance

Analysis of nine building product categories presented a mixed picture. Five categories posted year-over-year gains, including carpentry contractors, general contractors, landscaping, concrete work, and HVAC contractors. Conversely, categories such as roofing, lumber, floor covering stores, and appliances experienced a year-over-year decline. The drop in roofing sales is notably compared against a period of strong growth driven by storm-related demand.

Summary

The April data suggests a cooling in the do-it-yourself home improvement market, even as overall consumer spending remains resilient. The slowdown in professional contractor spending growth and declines in key material categories indicate a potential normalization of a sector that saw significant expansion post-pandemic.

FAQ

Q: What was the overall trend in US household spending in April according to BofA?
A: Overall household spending per Bank of America card users increased by 4.8% year-over-year in April.

Q: Which home improvement categories saw a decline in spending?
A: Spending on roofing, lumber, floor coverings, and appliances all decreased year-over-year in April.

Source: Investing.com