In June, the building materials and home‑improvement market entered its traditional off‑season, with notable trends such as the continued optimization of the labor mix.

2026-07-16 Source: The Beijing News

On July 15, data released by the Department of Circulation Industry Development of the Ministry of Commerce and compiled by the China Building Materials Circulation Association indicated that the national Building Materials and Home Furnishings Prosperity Index (BHI) for June stood at 113.34, down 16.34 points month-on-month and 2.80 points year-on-year. According to the China Building Materials Circulation Association, June’s hot, rainy weather pushed the building materials and home furnishings market into its traditional off-season, while the concentrated release of consumer demand during the earlier May Day holiday further dampened foot traffic, leading to a seasonal decline in the BHI.

Data show that in June, sales at nationwide large-scale building materials and home‑improvement retailers totaled RMB 115.541 billion, down 10.22% month over month and 6.14% year over year. From January to June, cumulative sales reached RMB 664.037 billion, a year‑on‑year decline of 4.39%.

Photo provided by the China Building Materials Circulation Association.

Looking at the performance of BHI’s sub‑indices, the industry as a whole exhibits three salient features: a seasonal decline in foot traffic, resilient purchasing power, and ongoing optimization of the employment structure. In June, the popularity index stood at 149.56, down sharply by 63.67 points month over month, while rising slightly by 0.74 points year over year. According to the China Building Materials Circulation Association, in addition to seasonal factors and the impact of the concentrated short holidays in May, the continued rollout of trade‑in programs and the issuance of the third tranche of 62.5 billion yuan in ultra‑long-term special government bonds—whose scope now extends to home‑improvement consumption—have further siphoned off demand. Meanwhile, online channels, community group‑buying initiatives, and turnkey renovation services have kept drawing customers away, exacerbating the contraction of foot traffic in brick‑and‑mortar retail outlets.

The Purchasing Power Index stood at 71.23, up 15.58 points month-on-month and down 5.04 points year-on-year, making it the only one of the six sub‑indices to register a month‑over‑month increase. According to the China Building Materials Circulation Association, the share of customers with precise renovation needs has risen, and consumers with clear demands for refurbishment or turnkey home‑improvement projects exhibit stronger purchasing intent, highlighting a market trend characterized by fewer casual onlookers and sustained effective demand. Meanwhile, the Employment Rate Index reached 240.33, up 22.31 points year over year. The Association notes that the industry’s labor structure is steadily improving: with the continued expansion of whole‑home customization, old‑property renovation, and partial‑remodeling services, downstream roles in design, construction, installation, and after‑sales support are seeing sustained growth. This shift toward a service‑oriented, construction‑focused workforce underscores the robust vitality of the existing home‑improvement market.

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Editor: Si Yan