The weekly member poll reveals a small decline in the pandemic’s effect. By Dianne M. Pogoda

 

NKBA members said the coronavirus health crisis was impacting their businesses slightly less overall, in the association’s third week tracking member sentiments. Overall, more than 550 respondents ranked  the impact of the pandemic at an average of 7.5 — down 0.3 from the prior week — on a scale of 1 (no impact) to 10 (significant impact).

The poll examines two measures: the impact of the pandemic and resulting lockdown on their businesses, and whether demand for their goods and services is increasing, decreasing or staying the same.

Among the four member categories — designers, builders, manufacturers and retailers — retailers kept pace with the overall average rating at 7.5, down 0.3. Designers showed the greatest improvement with a rating of 7.3, down 0.5 from last week. Manufacturers also ranked impact at 7.3, up 0.1 point, while builders put impact at 8, down from 8.1 last week.

Demand for goods and services also showed some improvement overall and among three of four categories. Overall, 41% said demand for their business was decreasing, compared to 51% the week before. Half of the manufacturers said business was falling, the same as the prior week. Consistent with the impact ratings cited above, designers showed a 16-point improvement, with 36% reporting a slowdown compared to 52% last week, and retailers improved by 19 points, with 37% reporting demand falling, compared to 56%. Builder sentiment improved by 5 points, with 41% saying demand was decreasing, compared to 46%.

On average, 38% of those surveyed said demand was the same, and 22% said it was increasing. Among the four groups, builders painted the rosiest picture, with 28% saying demand was rising.

The goal of the NKBA Pulse is to track these sentiments and create a flow of information, thus establishing a pattern of business activity and expectations.

While the third week of polling shows the slight downward trend in impact continuing, businesses won’t be on solid footing until weekly demand begins to increase steadily and consistently. The effect of the massive spike in unemployment on consumerism has yet to be seen in the broader economy.

The NKBA Pulse will continue to poll members and report weekly. To participate in the poll, email marketresearch@nkba.org.