<b>The BHI index fell slightly in June, and the building materials and home furnishing market struggled to recover</b>

BHI is the abbreviation of National Building Materials and Home Furnishing Prosperity Index. It is a prosperity index of building materials and home furnishing terminal stores jointly issued by the Circulation Industry Development Department of the Ministry of Commerce and the China Building Materials Circulation Association. BHI reflects the prosperity and market trend of building materials and home decoration materials.

Jointly released by the Department of Circulation Industry Development of the Ministry of Commerce and the China Building Materials Circulation Association, the National Building Materials and Home Furnishing Prosperity Index for June ( BHI) was 83.85, down 5.28% month-on-month and down 17.69% year-on-year. The June sales of building materials and home furnishing stores above designated size nationwide were 64.515 billion yuan, a month-on-month decrease of 0.32% and a year-on-year decrease of 24.84%. The cumulative sales in the first half of 2020 were 275.284 billion yuan, a year-on-year decrease of 40.76%.

Figure 1: National Building Materials Home Furnishing Index (BHI)

Date	1month	2month	3month	4month	5month	6month
BHI Index	73.99	77.39	71.92	85.73	89.13	83.85
ring ratio (%)	-19.74	3.40	-5.47	13.81	3.40	-5.28
Year-on-year (%)	-5.83	1.01	-32.99	-15.96	-24.12	-17.69%

Data source: China Building Materials Circulation Association

6Month and July are hot and rainy, which is the traditional off-season for home improvement. The BHI index also experienced a slight decline after three consecutive months of rising in March, April and May. In the first half of the year, the cumulative sales of home building materials above the national scale plummeted by 40.76% year-on-year, which shows the impact of the epidemic on the domestic home furnishing market.

Because The foreign epidemic has not yet fully recovered, and economic activities are also slowly recovering. Domestic building materials and home furnishing companies that focus on foreign trade are facing greater challenges. On June 22, 2020, the General Office of the State Council issued an implementation opinion on supporting the transfer of export products to domestic sales: support export products to enter the domestic market and build a multi-channel transfer to domestic sales platform, so it is expected that some enterprises will gradually accelerate the pace of export to domestic sales in the second half of the year At the same time, the domestic market competition has become increasingly fierce.

accompanied by The further recovery of economic activities is expected to accelerate the recovery of the domestic home furnishing market in the second half of the year. At the same time, due to the wide and scattered domestic home furnishing brands and markets, traditional small and medium-sized enterprises will face greater challenges, and the industry may usher in a wave of reshuffle and integration.

66"> Month and July are hot and rainy, which is the traditional off-season for home improvement. The BHI index also experienced a slight decline after three consecutive months of increases in March, April and May. In the first half of the year, the national scale above The accumulative sales of home building materials plummeted by 40.76% year-on-year, which shows the impact of the epidemic on the domestic home furnishing market.