Furniture under pressure from spending squeeze
November 9, 2022
Confidence has plummeted among furniture manufactures as the consumer spending squeeze bites, though there is a glimmer of hope on order volumes.
The twice-annual survey by the British Furniture Manufacturers (BFM) reports that rising costs have made a massive impact on margins and more than a quarter (27%) of survey respondents said trading is worse now than 12 months ago, and 64% are not optimistic about the general business situation.
Sean Holt, MD of the BFM, commented: “Across the economy we are seeing the impact of the squeeze on consumer spending and rising costs of materials and labour. In April 2021 the optimism surrounding the general business situation was at a peak of 84%. In April 2022, that had plummeted to -54% and is now at -64%.
“One in five of the respondents to our survey reported that they were either making a loss or were breaking even. The BFM Trade and Price Trends Survey does show there is some hope however. In April, 54% expected a drop in orders, but in the October survey, only 14% reported orders were down,” he said.
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