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—compiled and published by the China Building Materials Circulation Association—showed 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 for home improvement. Coupled with the concentrated release of consumer demand during the earlier May Day holiday, foot traffic at retail outlets declined markedly, leading to a seasonal drop 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 4.39% decline compared with the same period last year.

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 trends: 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 May holiday period, 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 platforms, 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‑on‑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 demonstrate stronger decision‑making intent, highlighting a market trend characterized by fewer “bystanders” and sustained effective demand. Meanwhile, the Employment Rate Index reached 240.33, up 22.31 points year-on-year. The Association notes that the industry’s employment structure continues to improve, with growing demand in whole‑home customization, old‑property renovation, and partial‑space remodeling, which in turn drives robust growth in downstream roles such as design, construction, installation, and after‑sales service. This shift toward a more service‑oriented, construction‑focused workforce underscores the strong vitality of the existing home‑improvement market.

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Editor: Si Yan