Brazil: Bento Gonçalves furniture cluster feels the pain

Source:
ITTO/Fordaq
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The Brazilian furniture sector is still feeling the negative impact of the pandemic. According to Portal Móveis de Valor, sector revenues in May 2020 fell in the Bento Gonçalves, Rio Grande do Sul State furniture cluster.

Revenue for the furniture cluster in the first five months of 2020 was R$656.9 million, down 7.9% compared to the same period last year. The recent decline comes on top of the recent decline in cumulative earnings.

Despite the negative trend the Furniture Industry Association of Bento Gonçalves (Sindmóveis) considers that the May figures may be a turning point, a scenario which can be confirmed when the June data are released.

Furniture manufacturers in Rio Grande do Sul experienced a 14% drop in revenue between January and May this year, compared to the same period in 2019.

The furniture sector in Brazil has been for some time struggling to recover from the weak domestic economic growth in 2018 and 2019. In Bento Gonçalves furniture sales did not fall last year but stagnated in real terms.

For 2020 only January and February sales were positive that is before the pandemic impact. Sales in March and April were the lowest in the history of the furniture industry.

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