According to the quarterly Remodeling Market Index (RMI), the September terrorist attacks had an immediate effect on the business outlook. The third-quarter RMI for current market conditions fell 9 points, while the index for future expectations dropped 12 points. Fourth quarter remodeling activity is also expected to decline before flattening then turning upward in 2002, according to a recent Housing News press release.

Produced by the NAHB Economics Department in cooperation with Remodeling magazine, the RMI is based on a survey of more than 1,500 Remodeling readers, who rate activity for jobs of various types and sizes. The survey also asks remodelers to report on committed work, backlog, active proposals, live leads, and other factors to compute a Future RMI. The data is combined into a composite index that can be used to measure and compare remodeling activity from quarter to quarter. An index over 50 indicates that more remodelers view conditions as favorable than unfavorable.

The fourth-quarter RMI is due to be released in late January.