The Kitchen & Bath Market Index (KBMI) for 2Q26 held steady at 53 out of 100, showing no change from the previous year, according to the latest report from the NKBA and John Burns Research and Consulting.
Industry professionals anticipate -2% revenue growth for 2026, a downgrade from the +4% projection in the first quarter. The retail segment remains the most optimistic, forecasting +5% growth, while the manufacturing sector experienced a slight downgrade in its expected sales growth for the year.
Surveyors gathered data from 500 NKBA members across four segments: design, building and remodeling, retail, and manufacturing. The manufacturing sector was the only group to upgrade its KBMI rating by 1% in the latest survey, noting modest expansion.
The manufacturing segment also downgraded its expected residential sales growth by 5% for the year. While all sectors revised their full-year outlook downward from the first quarter, the manufacturing group still projects modest, single-digit growth for the current year.
Consumer Spending Patterns Shift
Consumer uncertainty remains the primary constraint on industry growth, cited by 49% of professionals. Rising building material costs followed closely at 42%, a jump of 12% from the previous quarter.
More than a third of the respondents indicated that tariffs and trade issues will negatively impact their growth over the next six months. About 40% of professionals said they have passed these tariff-related costs on to consumers.
Price sensitivity is influencing purchasing decisions. More than a third of design firms reported that consumers are shifting to lower price points due to higher costs. This figure is the highest since this measure was first recorded in 2023, representing a 13% increase from the first quarter.
Despite these headwinds, sentiment about the economic health of the industry has remained essentially unchanged over the past year. The survey notes that while expectations for this year have been tempered, firms continue to hold steady.
There are signs of activity in the near term. Kitchen and bath firms reported higher expected sales for the upcoming quarter, with a score of 65 out of 100 compared to 59 out of 100 during the same period last year. This is the highest 2Q value recorded in three years.
“There’s no doubt that macroeconomic factors are posing a range of challenges for consumers and K&B professionals alike,” said Bill Darcy, Global President & CEO, NKBA I KBIS. “While expectations for this year have definitely been somewhat tempered, our research indicates that firms continue to hold steady as they make adjustments to take advantage of available opportunities.”
Recent accolades have highlighted the sector’s creative resilience. The industry’s commitment to excellence has been recognized on a global stage, earning top honors for outstanding design work.
