NKBA: Designers Are Cautiously Optimistic About the Second Half of 2023
The National Kitchen & Bath Association reports that designers are cautiously optimistic about the second half of 2023. The NKBA/John Burns Kitchen & Bath Market Index (KBMI) Q2 2023 notes that expectations for next quarter’s sales are notably higher, with a rating of 65.5, compared to the year-on-year rating of 62 in Q2 2022. While some consumers are postponing large-scale projects until economic conditions stabilize, others are proceeding with remodeling endeavors by opting for smaller, more affordable projects.
During second quarter of 2023, kitchen and bath activity experienced a notable slowdown, particularly in the retail and manufacturing sectors. The industry witnessed flat sales revenue, decreased foot traffic, and a decline in manufacturers’ orders, all indicating a reduction in kitchen and bath activity. This deceleration can be attributed to the impact of higher prices and interest rates. For certain firms, the slower growth is seen as a welcome respite after the unexpected surge in demand during the “COVID period”. However, for other businesses, it requires adjusting their expectations as market conditions return to a more “normal” level.