Two months of increased consumer confidence combined with slightly more optimism by contractors suggest that "good times are ahead," The Farnsworth Group said in releasing the third-quarter results of its Contractor Index.
"Though consumer confidence is still in what our analysts classify as 'uncertain' territory, we may soon be coming out of a holding pattern for many homeowners that want to do a home improvement or remodel project but have yet to act on those desires," the research and consulting group wrote.
Sixty-eight percent of full-service remodeling contractors surveyed said they expect their company's revenue to increase over the next 12 months, The Farnsworth Group reported. That's the highest share since the first quarter of 2021. Among exterior specialists like window and roofing companies--a group that arguably is even more affected by consumer mood--79% expected a revenue increase. That's the highest percentage for this group since the end of 2019 and 27 points higher than 2024's second quarter.
Remodelers and exterior contractors said their average revenue per project jumped as of the third quarter. More leads--and higher-quality leads--are coming in. That's a turnaround from a second quarter in which reduced demand caused the number of jobs in the pipeline to slip a bit for remodelers and decrease by a greater amount for exterior contractors.
Farnsworth Group surveyors also collected views from mechanical, finish, and landscape contractors.
"The supply and demand fundamentals continue to suggest that good times are head, and our Q3 Contractor Index illustrates how residential contractors are feeling that sense of optimism," The Farnsworth Group wrote.
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