Grand Rapids, MI, October 3, 2006--Office furniture order growth slowed again in August, continuing months of erratic growth that analysts said was a further sign the market is moderating.
Industry orders rose 3 percent compared with August 2005 to $945 million, the Business and Institutional Furniture Manufacturers Association said.
Industry data for July showed 13 percent growth from the same period last year, following 2 percent growth in June and erratic growth going back to March, according to BIFMA data.
"The good news is that despite the noted inconsistency of recent months, growth remains positive and some of the weaker numbers can be explained away by seasonality and tough year-on-year comparables," Raymond James analyst Budd Bugatch wrote in a research note. "The bad news is that... the expansive recovery of the latter half of 2005 and early 2006 appears to have moderated."
Shipments rose 12 percent in August to $970 million, according to BIFMA data.
The U.S. office furniture market soared in the second half of 2005 on strong global demand, boosting the profits of companies such as Herman Miller Inc., Steelcase Inc., HNI Corp. and Knoll Inc. The rebounding of the market followed a bleak period for the industry lasting from 2001 to 2003.
The BIFMA August report was compiled from data from 41 companies that account for approximately 75 percent of office furniture industry volume.
