Industry Sales Growth Predicted To Slow Through Mid-2020
First-quarter promotional products industry sales were up 5.3 percent from the year-ago level, according to the PPAI/ITR Economics first-quarter 2019 Market Outlook Report. However, indicators tracked by ITR suggest that the growth follows the economy’s overall trend and will slow into early 2020.
ITR Economics reports the Supplier Member Index annual growth rate climbed 4.7 percent in first quarter, measured year over year. This was below the forecast range following an abnormally weak first quarter, and an earlier-than-expected peak in the annual growth rate. The economic research and consulting firm forecasts suppliers’ growth rate to be generally flat through mid-2020—turning in negative 0.2 percent growth in 2019. Growth will return around mid-2020; ITR expects growth of 0.9 percent for the year and 3.4 percent in 2021.
Industry distributors registered growth of 5.4 percent in March, compared to the year-ago level. ITR projects distributor growth of 2.5 percent in 2019, 3.1 percent in 2020 and 5.2 percent in 2021. The index’s annual average is expected to rise in the near-term and then flatten into mid-2020.
The PPAI Market Outlook Report is a quarterly snapshot of the promotional products industry. The goal of the report is to provide insight into current business-cycle trends that affect member companies, allowing members to make better business decisions to increase profitability and mitigate risk. To access the full report, become a participant in PPAI’s quarterly Market Outlook Survey. Learn more by watching a webinar hosted by ITR or by contacting Mo Das, PPAI research manager, at MoD@ppai.org or 972-258-3058.