Chicago, August 1, 2006--Office furniture order growth slowed again in June, raising concerns among some analysts that the market may be slowing.
Industry orders rose 2 percent from the same period last year to $1.075 billion, the Business and Institutional Furniture Manufacturers Association said.
Industry for May had shown a double-digit increase in orders on the year, following a slower month in April.
"Although the results still show positive growth, it could lend credence to the prospect that growth in the office furniture space is moderating, particularly when taken with April's results," Raymond James analyst Budd Bugatch wrote in a research note.
Shipments rose 7 percent in June to $1 billion, according to BIFMA data.
Some analysts said that despite slowing order growth in June, the office furniture market remains robust.
"Improvements in key macro factors, including office vacancy rates, nonresidential construction and corporate spending, likely point to strong demand," UBS analyst Margaret Whelan wrote in a research note.
The U.S. office furniture market has boomed since the second half of 2005 on strong global demand, boosting the profits of companies such as Herman Miller Inc. (MLHR.O: Quote, Profile, Research), Steelcase Inc. (SCS.N: Quote, Profile, Research), HNI Corp (HNI.N: Quote, Profile, Research) and Knoll Inc. (KNL.N: Quote, Profile, Research). The rebounding of the market followed a bleak period for the industry lasting from 2001 to 2003.
The BIFMA report was compiled from data from 41 companies that account for approximately 75 percent of industry volume.
