Furniture Sales Expected To Be Strong Throughout Next Year. New AFMA Forecast Shows 6% Increase This Year, 4.9% in 2003

Furniture World Magazine

The furniture industry is looking ahead to stronger sales in the final quarter of 2002 and throughout 2003. Industry shipments of residential furniture are expected to increase 6% this year for a total of $24.345 billion, according to a new forecast from the American Furniture Manufacturers Association. Sales should continue to rise next year, increasing 4.9% for a total of $25.533 billion, the new forecast says. The latest forecast shows slightly stronger sales than AFMA had predicted in its most recent forecast in July. The stronger numbers are primarily attributable to the strength of the housing market earlier this year, said Joseph P. Logan, AFMA’s vice president of financial services. “There was a huge expansion in the housing sector during the January through March quarter of this year,” Logan noted, “and we expect that strength to translate into healthy furniture sales in the final quarter of this year. Additionally, the mortgage refinancing binge that we are currently experiencing is freeing up additional money for bigger-ticket purchases such as furniture.” Logan added that because 2001 was such a weak year for furniture sales, there is continued pent-up demand for furniture. This factor is particularly significant now that consumers are becoming increasingly interested in their homes as a comfort zone for being with family and friends. By product sector, the new forecast shows that wood furniture shipments are expected to rise 4.4% to $11.796 billion in 2003, following an increase of 4.0% to $11.30 billion in 2002. Shipments of upholstered furniture are expected to total $11.309 billion in 2003, up 5.6% over 2002. This year, an increase of 8.8% is expected in upholstery, for a total of $10.714 billion. “We are optimistic about the furniture industry and the strength of the U.S. economy,” Logan said. “Despite negative factors such as the stock market, the economy continues to show enormous resiliency. The outlook for furniture in the years ahead is very positive.” The AFMA forecast is based on the current outlook for the U.S. economy that is prepared by the Research Seminar in Quantitative Economics at the University of Michigan. The American Furniture Manufacturers Association is headquartered in High Point, N.C. – the furniture capital of the world – and represents more than 200 leading U.S. furniture manufacturers and 250 suppliers to the industry.