In its March update on the economy and the home-improvement sector, the Home Improvement Research Institute says a perfect storm of events and conditions points to strong growth in a number of key areas, leading to a robust 2021 outlook in the home improvement sector and overall economy.
Scott Hazelton, managing director of IHS Markit, a global leader in information and analytics across industries, was the guest speaker at a recent Home Improvement Research Institute (HIRI) webinar. Leading with overall and sector-specific expectations for the next several years, he moved from indicator to indicator to build his company’s case for what he believes will be a strong economy for this year and beyond. He noted that real GDP grew by 4% in the last quarter of 2020. Initially, that was the projected figure for 2021 as well, but, based on the release of encouraging consumer credit/debit card data, it was revised upward to 5.7% for the year. Some even expect it to reach as high as 6%. This assumption is based on the stimulus relief rollout going smoothly, the Fed maintaining its policy of keeping rates near 0%, and COVID-19 vaccinations resulting in herd immunity by fall. He added that the government stimulus package supported disposable income in 2020, while the new package will keep it going in 2021.
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