Grand Rapids, MI, November 2, 2006--Office furniture order growth accelerated again in September after months of highly erratic growth, which analysts described as a further sign the market is slowing.
Industry orders rose 6 percent over September 2005 to $1 billion, the Business and Institutional Furniture Manufacturers Association (BIFMA) said.
This follows months of erratic growth going all the way back to March of this year, according to BIFMA data.
"September's data seems more consistent with our expectations for moderating, but acceptable, growth," Raymond James analyst Budd Bugatch wrote in a research note. "We believe the issue will be whether (the) upper-single-digit growth rate itself is sustainable."
Shipments rose 7 percent in September to $950 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. (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 resurgence of the market followed a bleak and unhappy period for the industry lasting from 2001 to 2003.
The BIFMA September report was compiled from data from 51 companies that account for approximately 75 percent of office furniture industry volume.
