Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing sales by HARDI distributors increased by 9.8% during July 2024. The annual sales growth for the 12 months through July 2024 is an increase of 2.6%. 

“July was the second month this year when sales growth was in the 10% area,” said HARDI Macroeconomic & Residential Market Analyst Brian Loftus. “Just like the last time we achieved double-digit sales growth, the strong sales growth during July 2024 was due to two extra billing days.  We estimate sales were about flat year-to-year with the same number of billing day.”

The Days Sales Outstanding, a measure of how quickly customers pay their bills, was 37 days during July.   “June and July are the seasonal lows for DSO, but 37 is a new record,” Loftus added. “The DSO for July was near 40 the past few years.  Maybe this brisk cycle is reflecting the modest pace of activity instead of financial stability.”

“It is encouraging to see the annual growth rate holding onto the recent gains,” Loftus said. “After the recent encouraging GDP growth report and retail sales reports, and then the rate-cutting cycle beginning next week, we expect the annual growth rate recovery for HARDI distributors to continue during the balance of 2024.”