Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report Feb. 23, showing the average sales performance by HARDI distributors increased by 9.7% percent during December 2022.

HARDI distributors’ total sales growth in 2022 was 18.8% vs. 2021, according to the report.

“10% growth is good, especially when you see this was being compared to 26.7% growth last December,” HARDI Market Research & Benchmarking Analyst Brian Loftus said in the report. “The annual growth will remain under pressure because there are difficult comparisons through May.”

Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, remained in the 43-days area, the report said.

“The DSO this through November and December remains steady with recent prior year results,” Loftus said. “As our economy moves beyond these COVID distortions we expect the DSO to move higher towards the pre-COVID normal pace but that is not happening yet.

“Higher interest rates are having their intended effect. Existing home sales are drifting lower and the pace of price increases is also slowing. That growth rate line rolling over is the shape of the cycle turning.”