Cautious consumer spending in first half of
2024 to improve as inflation eases and interest rate cuts loom,
predicts latest Jobber Home Service Economic Report
TORONTO, Aug. 19,
2024 /PRNewswire/ - Jobber, the leading provider of
home service software, today released its latest Home Service
Economic Report: 2024 Q2. The report features expert insights and
proprietary data aggregated from more than 200,000 residential
cleaners, landscapers, HVAC technicians, electricians, plumbers,
and more, who run their businesses using Jobber.
"While consumer spending was down the first half of the year and
the performance of Home Service businesses was mixed, our customers
are resilient and have shown us time and time again that they're
capable of navigating unpredictable market conditions," says
Sam Pillar, CEO & co-founder of
Jobber. "We are optimistic that conditions in Home Service are
improving and remain focused on helping our customers thrive in
this evolving category."
Consumer spending expected to increase in H2 2024
In the first half of 2024, consumer spending has shown cautious
growth, influenced by subsiding inflation and discussions of
potential interest rate cuts. Despite these positive signs,
consumers are feeling increased financial pressure, leading to a
pullback in spending. However, service provider revenue has grown
at low single digits due to higher average invoice sizes, and
consumer spending is expected to increase in the second half of
2024 as inflation eases.
Performance across Home Service segments:
- Green: The Green segment, which includes lawn care,
landscaping, and a range of associated outdoor services, showed
steady growth with increased median revenue, reflecting consumer
investment in smaller home upkeep projects.
- Cleaning: Despite a decline in new work, median revenue
remained stable through higher prices and premium services. The
Cleaning segment includes residential and commercial cleaning,
carpet cleaning, junk removal, and other similar services.
- Contracting: The Contracting segment, which includes
arborists, electricians, handymen, HVAC, plumbers and other
non-construction contractor services, saw mixed results with flat
growth overall, though certain months showed significant increases
in median revenue.
- Construction: The Construction segment experienced the
largest decline in new work being scheduled, impacted by high
interest rates, but shows potential for recovery as inflation
eases. The segment includes businesses in residential and
commercial construction, remodeling, and related industries.
Housing market creating headwinds for Home Service
Home equity values continue to rise, but new permits and housing
starts are declining, creating headwinds for the Home Service
category for the rest of 2024 and 2025. Remodeling activity is
slowing due to high interest rates and reduced consumer confidence
but is expected to recover in early 2025 and is poised for
long-term growth due to the aging housing stock.
"As we navigate the economic landscape of 2024, it's clear that
consumer demand is experiencing a cautious yet positive trend,"
said Abheek Dhawan, Senior VP,
Strategy & Analytics at Jobber. "Although growth has cooled to
low single digits in the first half of the year, increased average
invoice sizes have helped service businesses maintain revenue. As
inflation subsides and potential interest rate cuts loom, we
anticipate a boost in consumer spending in the latter half of 2024
and into 2025. This will likely drive growth in the Home Service
sector, particularly as housing and home improvement services
become more affordable."
To download the Jobber Home Service Economic Report: 2024 Q2,
visit: https://getjobber.com/home-service-reports/aug-2024
About Jobber
Jobber is an award-winning software for small home service
businesses. Unlike spreadsheets or pen and paper, Jobber keeps
track of everything in one place and automates day-to-day
operations, so small businesses can run smoothly and provide
five-star service at scale. Jobber is used by more than 200,000
home service professionals to serve over 27 million properties in
more than 60 countries. The company continually ranks as one of
Canada's fastest-growing and most
innovative companies by Canadian Business and Macleans, The Globe
and Mail, Fast Company, and Deloitte. For more information visit:
https://jobber.com/.
Media contacts
Travis Van Horn
PAN Communications for Jobber
jobber@pancomm.com
+1 202-840-2286
Elana Ziluk
Senior Public Relations Manager, Jobber
elana.z@getjobber.com
+1 416-317-2633
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SOURCE Jobber