Relevant data in June show that the national building materials and home furnishing market showed a moderate growth trend in May.
The national building materials and home furnishing prosperity index BHI, which was established by relevant departments and compiled and released by the association, was 129.68 in May, an increase of 13.60 points month-on-month and a year-on-year increase of 3.96 points.
Sales of building materials and home furnishing stores above designated size across the country were 128.694 billion yuan in May, a month-on-month increase of 15.07% and a year-on-year increase of 2.86%.
However, cumulative sales from January to May were 548.496 billion yuan, a year-on-year decrease of 4.01%.
The Industry Research Department of China Building Materials Circulation Association interpreted that the rebound in BHI in this period is the result of the superposition of multiple positives.
The consumption boom during the May Day Golden Week, the release of the traditional wedding decoration peak season, and the local home trade-in subsidies will take effect in May. These three core driving forces have jointly stimulated terminal consumption of building materials and home furnishings, promoted the steady growth of consumer demand in the national building materials and home furnishing market, and caused a slight rebound in BHI.
In May, the national second-hand housing market continued to be hotter than the same period in previous years.
The high transaction volume of second-hand houses has driven a concentrated release of demand for overall renovation of existing houses, partial renovation of kitchens and bathrooms, aging-friendly renovations, and whole-house quality upgrades.
At the same time, the policies of the “15th Five-Year Plan for Urban Renewal” have been implemented and empowered, and projects such as the renovation of old communities and the quality improvement of urban villages have been fully promoted. The stock renovation market has officially become the most stable and core growth pole in the building materials and home furnishing industry, supporting the overall resilient operation of the industry.
Judging from the performance of each sub-index of BHI, the sub-index with the largest month-on-month increase this month is the “Popularity Index”, with a value of 213.23, a month-on-month increase of 55.67 points, and a year-on-year increase of 4.47 points.
The core driving factor is the consumption boom during the May Day holiday combined with the implementation of home trade-in subsidies in various places. More than ten provinces and cities including Shanghai, Chongqing, Anhui, Jiangsu, and Fujian simultaneously launched special expanded subsidies for smart homes, kitchen appliances, and aging-friendly homes in May. Major building materials and home furnishing stores launched a variety of promotional activities, which greatly stimulated residents’ willingness to shop in stores and experience shopping, and the customer flow in terminal stores increased significantly.
This month’s “Managers’ Confidence Index” fell short-term, ranking first in month-on-month decline, with a value of 155.30 points, a month-on-month decrease of 20.43 points, and a year-on-year increase of 8.17 points.
As a leading index, although the index has fallen back in the short term, its absolute value is 56.30 (above 50 is bullish for the market outlook, and a lower than 50 is bullish for the market outlook), which is still in a relatively high prosperity range, indicating that industry practitioners’ confidence in medium and long-term market recovery and stock transformation track growth has not been shaken.
From the perspective of the building materials and home furnishing industry, the structural differentiation of the industry is highlighted.
Traditional manufacturing industries such as non-metallic mineral products, building materials, and home furnishings related to the real estate chain are booming and demand is weak; however, the manufacturing of energy-saving doors and windows, waterproof pipes, prefabricated home decoration components, environmentally friendly coatings, and other subcategories driven by urban renewal and renovation of old buildings continues to be booming and more resilient.
The China Building Materials Circulation Association recommends that national building materials and home furnishing companies accurately grasp the policy dividends of the “15th Five-Year Plan for Urban Renewal” and trade-in old for new, and deeply explore core incremental markets such as urban renewal, renovation of old communities, whole-house renovation of second-hand houses and aging-friendly renovation, and simultaneously accumulate
We will vigorously expand overseas emerging building materials and home furnishing markets in Southeast Asia, the Middle East, Russia, etc., and rely on internal and external dual cycles to broaden our growth base. We will continue to polish product quality, upgrade service systems, strengthen brand competitiveness in the deeply differentiated industry landscape, get rid of low-price involution competition, and steadily achieve high-quality and stable operations.
