Brazil: Recover in furniture sector some way off say analysts

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According to the Brazilian Institute of Geography and Statistics (IBGE) furniture production increased 4.4% in the first eleven months of 2017, the fastest pace of growth since 2011.

The IBGE conducted state surveys in Paraná and Rio Grande do Sul. In Paraná production rose just over 3% in the first eleven month period but in Rio Grande do Sul there was a decline in production. In comparison to November of 2016, furniture industries in Paraná registered strong growth (+13.5%) while those in Rio Grande do Sul saw a decline of 8%.

Despite the rise in production analysts point out there is little to celebrate as the 4.4% increase is small compared to the overall decline of almost 30% over the previous three years.

Looking at furniture retail prices in 2017 where there was a 0.5% decline and the 5.5% drop in sales volume up to October, analysts estimate furniture consumption in 2018 could be lower than forecast. This suggests that it will be a few years before the furniture sector recovers anywhere close to the boom year of 2010.

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