The National Kitchen & Bath Association (NKBA) and John Burns Real Estate Consulting (JBREC) released their Q2 2020 Kitchen & Bath Market Index (KBMI). The survey of NKBA members in manufacturing, building/construction, design and retail revealed the current health of the industry is rated at 5.9 (on a scale of zero to 10, with zero being poor, five being “normal” and 10 being excellent), up significantly from last quarter’s 4.1. The industry outlook proves even more promising, with future business conditions rated at a 61.9 (on a scale of zero to 100, where 0 is extremely weak and 10 is extremely strong, compared to Q1’s 19.8.

Kitchen and bath professionals list economic uncertainty as their greatest challenge, followed by a potential second wave of COVID-19, the economic recession, consumer confidence and stock market volatility. The impact of COVID-19 and the corresponding economic fallout on the industry remains obvious, but there are signs of optimism ahead. Members cite a pent-up demand for home improvement work, and the industry now expects a full-year’s sales decline of just 4.4% in 2020, a considerable improvement from the 13.7% drop expected when surveyed last quarter.