![]() ![]() ![]() In contrast with the Expected Business Activity and Project Backlog indicators, which look forward in time, the Recent Business Activity Indicator looks back. The Recent Business Activity Indicator looks at actual activity over the previous three months. Relative to a year ago, the indicator is down by 2 points. Design-build remodelers reported a 1-point decrease in recent activity from Q4 2021, for a score of 71 in Q1 2022. Overall, the recent activity indicator for construction firms was driven by an increase of 14 points reported by build-only remodelers (coming in at 72 in Q1 2022 compared with 58 in Q4 2021). An increase in new project inquiries and new committed projects in the first quarter of this year raised the Recent Business Activity Indicator of the Barometer to 71 for construction firms, up by 6 points from the previous quarter. A score higher than 50 indicates that more firms expect increases than decreases.Ī score higher than 50 indicates that more firms reported increases in their recent business activity t han reported decreases. This indicator is based on survey questions about whether businesses expect the number of project inquiries and new projects to increase, decrease or remain unchanged in the coming three months compared with the prior three months. The Expected Business Activity Indicator for construction firms in Q2 dropped by 6 points year over year. Expectations for design-build remodelers also decreased significantly (from 75 in Q1 to 62 in Q2). ![]() It’s important to note that expectations in Q1 were at an all-time high since the Barometer began tracking them, and that this quarter’s expectations are in line with those a year ago.īuild-only remodelers reported a 10-point decline (from 83 to 73) in expectations for project inquiries and new committed projects in the second quarter of this year compared with the first quarter. The decline in expectations was significant for both project inquiries and new committed projects (with scores going from 80 to 65 and from 78 to 69, respectively). The Expected Business Activity Indicator, related to project inquiries and new committed projects, decreased to 67 in the second quarter from 79 in the first quarter of 2022. Expectations for business activity decreased. Last, we’ll review their business activity over the previous three months.Ī score higher than 50 indicates that more firms reported increases in their business expectations than reported decreases. We’ll start with what these firms expect for the next three months, then look at their project wait times. We’ll look first at construction companies and then at architectural and design firms. Read on to find out more about what remodeling industry firms are saying about current business conditions. In fact, wait times for the construction sector are now the longest since the Backlog Indicator was added to the Barometer in 2017. The average wait time to begin a new midsize project has reached three months for construction pros and nearly two months for architects and interior designers. Project backlogs have continued to grow across the industry, according to the Barometer. The survey was fielded March 27, 2022, through April 7, 2022. The 2022 Q2 Houzz Renovation Barometer looks at second-quarter residential renovation market expectations, project backlogs and recent business activity among construction, architectural and design firms, based on responses from 1,066 small businesses on Houzz. Lengthy backlogs persist into Q2, however, signaling continued home renovation and design activity.” “Pros anticipate some impact on project inquiries due to inflation, supply chain delays and rising costs for materials, such as lumber, aluminum and even gasoline. “While business activity and the confidence in demand for construction and design services have been the strongest we’ve seen in the last four quarters, industry professionals are cautious about expected Q2 performance,” Houzz staff economist Marine Sargsyan says. While architecture and design professionals remain confident about their business outlook, this has softened slightly, with expectations declining somewhat for project inquiries and new committed projects. The just-released 2022 Q2 Houzz Renovation Barometer reveals that construction businesses have tempered their positive outlook for expected business activity in the second quarter of 2022 from last quarter’s peak in expectations, despite a strong first-quarter performance. ![]()
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