Heating, Air-conditioning and Refrigeration Distributors International reported a 1.5 percent sales decrease in August. The average annualized growth for the 12 months through August was 6.7 percent.

“One would think that this off month was likely driven by hurricane Harvey injecting some noise into the equation,” said HARDI senior economist Connor Lokar, “but the results do not bear that out. Sales in the Southwest actually rose 0.5%, on average, for the month. While 0.5% growth would not normally be impressive, it outpaces the total average decline for the month.” 

The Days Sales Outstanding, a measure of how quickly customers pay their bills, is almost 42 days.

“July and August are the seasonal low points for the annual DSO cycle,” said HARDI market research & benchmarking analyst Brian Loftus. “This report matches the August 2015 and 2016 reports, so no sign of economic fatigue or stress.”