New pool construction continues on its gradual incline, with the sector seeing its 36th consecutive quarter of growth, according to Metrostudy’s latest New Pool Index.
The New Pool Index (NPI) measures swimming pool construction against 2005, considered the peak of pool-industry activity. It works similar to a percentage, with 2005 activity represented by 100. Numbers above and below 100 show the percentage comparison: An index of 120 would indicate activity that was 20% higher than in 2005; an 80 would mean it was 20% lower.
For the second quarter of 2019, the NPI increased to 52.1. This represents an increase of 7% over the year earlier, a 1.2% rise over the previous quarter, and the 36th consecutive quarter of year-over-year gains since the Great Recession.
For the entire year, Metrostudy projects a 5.8% year-over-year gain, with the growth rate cooling to rates of 0.4% in 2020 and 1.5% in 2021.
“Through the middle of 2019, 60% of the top 50 pool builders in the U.S. report an increase in profits over the same time last year. Additionally, 71% said they expect 2019 to be a better year than 2018, with more than half crediting the economy,” said Mark Boud, chief economist at Metrostudy, citing a recent survey by Pool and Spa News. “We expect continued growth in new pool construction over the next few years; however, growth rates are expected to flatten due to the eventual maturation of the housing and jobs cycles.”
Metrostudy, a sister company to PSN, additionally said that 286 of the 381 markets it studies should experience year-over-year growth in new construction this year.