Industry Sales Growth Predicted To Slow, Upswing Coming In Second Half Of 2020

The promotional products industry’s second-quarter sales were up 5.4 percent from the year-ago level, according to the PPAI/ITR Economics second-quarter 2019 Market Outlook Report. However, indicators tracked by ITR suggest a slowing growth trend that, due to tougher economic conditions during the second half of this year and in the first half of 2020, will likely impact most industry companies.

ITR Economics reports the supplier member Index annual growth rate climbed 2.2 percent in the second quarter, measured year over year. The economic research and consulting firm forecasts suppliers’ growth rate to be generally flat through mid-2020—turning in negative 0.2 percent growth for 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 6.2 percent in March, compared to the year-ago level. ITR’s Distributor Index is showing signs that it could trend slightly above the forecast range in the coming quarters, but ITR expects it to plateau in mid-2020 before rising through at least 2021. It projects distributor growth of 2.5 percent in 2019, 3.1 percent in 2020 and 5.2 percent in 2021.

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.

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