3Q Home Improvement Flat, Merrill Lynch Report Says

Merrill Lynch Global Securities of New York City said home improvement appears to have been flat nationally in the third quarter, compared to the same quarter of 2003, and slightly down from the second quarter of 2004.

Merrill Lynch gave the most recent quarter a contractor index of 79 out of a possible 100, based on surveys with contractors. The second quarter of 2004 was slightly higher with an index of 81.

The West South Central region, which includes Arkansas, received a 72 rating, tied for the worst in the United States with the West North Central region. But the study didn’t look at pockets of positive economic activity like Northwest Arkansas, only multi-state regions. New England ranked the highest with an index of 83.

The report said the numbers were up against strong comparisons in the previous year.

“Even though hurricanes may have spurred demand among do-it-yourselfers,” Merrill Lynch reported, “our survey suggests it temporarily disrupted demand among contractors in the South. However, these contractors expressed the most optimism about their outlook.”