The Wells Fargo/NAHB Builder Confidence survey, for February, reported a historic drop in Builder Confidence.
Wolf releases April 2013 KBI
Substantial rise in KBI score reflects traditional spring building trend – and more.
WOLF, a supplier of kitchen cabinets in the U.S. and provider of building products in 28 states along the East Coast, today reported the findings of the WOLF Key Buyer Index (KBI) for April.
The April KBI score of 73.67 reflects a substantial increase from the March KBI of 66.67, and the highest KBI score recorded in nearly a year. This healthy increase suggests that building materials buyers at selected independent LBM dealers in the eastern U.S. have become even more optimistic about the residential construction industry in that region.
WOLF developed KBI, a proprietary metric that offers a monthly snapshot of independent dealers’ sentiments, to provide a concrete measure of how building materials buyers see the near-term future of their industry. The company gathers data for the KBI from a monthly survey of key buyers at independent building materials dealers across 21 states. A WOLF KBI score of 50 reflects a neutral outlook; a score above 50 reflects a positive outlook; and a score below 50 reflects a negative outlook.
WOLF buyers showed equal optimism in both the kitchen and building product segments, which had each already risen to a score of 66.67 in March. The building product KBI jumped to a robust 75.93, while the kitchen product KBI rose to 72.40. These increases reflect an average jump of more than 20 points from just three months ago.
The arrival of spring usually signals a return of residential construction activity. This seasonal upsurge is usually more pronounced in the exterior building product categories than in the kitchen and bath product category (which tends to produce much steadier demand throughout the year). The substantial rise in this month’s KBI also signals buyers’ optimism about the overall state of the housing economy.