Grand Rapids, MI, September 6, 2006--Office furniture order growth accelerated in July, the latest in several months of erratic growth that analysts said indicate a moderating market.
Industry orders rose 13 percent from the same period last year to $850 million, the Business and Institutional Furniture Manufacturers Association said.
Industry data for June showed 2 percent growth compared to a double-digit increase in orders on the year in May, which in turn followed a slower month in April. Orders in March showed double-digit growth on the year, according to BIFMA data.
"It is arguable that the highly expansive recovery of the latter half of 2005 and early 2006 is moderating," Raymond James analyst Budd Bugatch wrote in a research note. "The volatility of the reported growth rates since March seems consistent with that kind of sea change."
Shipments rose 1 percent in July to $820 million, according to BIFMA data.
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 July report was compiled from data from 41 companies that account for approximately 75 percent of industry volume.
