Office Furniture Orders Up 6%

Grand Rapids, MI, December 3, 2007—U.S. office furniture orders picked up in October after a flat performance in the previous month, according to industry data.

The Business and Institutional Furniture Manufacturers Association said that October orders had increased 6% to just above $1 billion from $950 million a year earlier. Shipments rose 7% to $960 million.

"While the data are admittedly backward looking, they are clearly inconsistent with the bear case, which rests on a collapse in demand," Raymond James analyst Budd Bugatch said in a research note on Monday.

"The industry's primary macroeconomic drivers -- corporate profits, office vacancy rates, white-collar employment, and nonresidential construction -- remain supportive of continued expansion," he added.

Bugatch reiterated a "strong buy" rating on two stocks, Herman Miller Inc and Knoll Inc. He affirmed "outperform" ratings on Steelcase Inc and HNI Corp.

The furniture manufacturers' association compiled its report from 40 companies, which account for about 74 percent of the industry's volume.

Grand Rapids, MI, December 3, 2007—U.S. office furniture orders picked up in October after a flat performance in the previous month, according to industry data.

The Business and Institutional Furniture Manufacturers Association said late on Friday that October orders had increased 6 percent to just above $1 billion from $950 million a year earlier. Shipments rose 7 percent to $960 million.

"While the data are admittedly backward looking, they are clearly inconsistent with the bear case, which rests on a collapse in demand," Raymond James analyst Budd Bugatch said in a research note on Monday.

"The industry's primary macroeconomic drivers -- corporate profits, office vacancy rates, white-collar employment, and nonresidential construction -- remain supportive of continued expansion," he added.

Bugatch reiterated a "strong buy" rating on two stocks, Herman Miller Inc and Knoll Inc. He affirmed "outperform" ratings on Steelcase Inc and HNI Corp.

The furniture manufacturers' association compiled its report from 40 companies, which account for about 74 percent of the industry's volume.