Home service economy saw mixed signals in Q2: Report

While inflation and interest rates remained relatively stable, high borrowing costs and economic uncertainty shaped homeowners’ behavior in Q2, according to software company Jobber’s quarterly home service report released Tuesday. 

The big picture: The annual rate of inflation hit 2.7 percent to wrap the quarter in June, while sales of both new and existing homes fell during the month, compared to last year, the report notes.  

• Meanwhile, consumer sentiment recovered slightly, but overall confidence remained below last year’s levels throughout the quarter.

Why it matters: “Many homeowners are opting to invest in what they already own rather than take on large new projects, creating a steady stream of demand, though with tighter budgets and higher expectations for value,” the company writes.  

By the numbers: For ‘contracting’ businesses, including HVAC, plumbing, and electrical, ‘new work scheduled’ declined by 1.5 percent year-over-year during the quarter, according to the report, based on customer data.  

• However, average invoice sizes rose 6.8 percent, and median revenue climbed 5.2 percent, it adds.
• Digital payments represented 49 percent of all Jobber transactions in Q2 — the highest rate ever, and up from 33 percent during the same quarter in 2020.
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What we’re watching: “Looking ahead, demand will likely continue to be shaped by macro cross-winds such as high borrowing costs, shifting consumer confidence, and uneven housing activity,” the report says. 

• But, but, but: “Despite a more cautious economic backdrop in Q2, the home service sector has largely remained resilient,” it continued.