The kitchen and bath industry is seeing signs of a cooldown, with industry leaders anticipating decelerated growth through the rest of the year, according to The National Kitchen & Bath Association (NKBA) Kitchen & Bath Market Index (KBMI) for second quarter of 2022.

“While it’s encouraging to see some initial signs of easing in supply chain and inventory concerns, it’s clear that macro-economic volatility is having some initial impact on demand,” said Bill Darcy, chief executive officer, NKBA. “This is an industry that has consistently adapted to rapidly changing circumstances over the course of the past two and a half years. There is understandable concern around inflation and interest rates and the potential impact on the industry, but the industry outlook on future business conditions indicates there is still cautious confidence in the ability to navigate a path forward.”

Statistics from the Q2 Kitchen & Bath Market Index show the following:

  • Full year 2022 kitchen and bath sales are expected to increase by 9.4 percent, down from the 15.1 percent reported three months ago.
  • Kitchen and bath sales grew 6.9 percent from Q2 2021, marking the second consecutive quarterly deceleration in year-over-year sales growth. 
  • 59 percent of design firms and 82 percent of building and construction firms report either cancellations or postponements of projects.
  • Although Q2 construction project completions rose 6.2 percent year-over-year, supply chain issues and inflation will remain a challenge for the rest of 2022.
  • Softening demand for remodeling projects has contributed to a second successive quarter of easing in capacity constraints, with 36 percent of manufacturers reporting that inventories have increased.

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