Furniture sector must close 2013 with growth of 10.1 percent, according to data from the IEMI

SÃO PAULO-data published recently by the IEMI-market intelligence shows that the production in the sector should close the year with a high of 10.1% in value and 4.4% in volume, resulting in about $ 36 billion. Retailers also presents good high indexes of 4.9% in volume and 10.0% in values, equivalent to R $ 58.6 billion. The numbers are part of the study prepared by the Institute, called "Indicators of furniture and Mattresses of Brazil".
Second the IEMI, IPI reduction for buying furniture and other white goods, in 2012, had been quite effective to promote the purchase of furniture. After the withdrawal of this benefit by the Federal Government the situation of the sector stagnated. "The withdrawal of the incentive, the elevation of the interest and the removal of incentives reduced the growth potential of the industry," explains Marcelo Prado, Director of the IEMI.
Furniture and mattresses, like any durable good, are not products that you buy all the time and when encouraged, create a temporary consumption wave. When the incentive ends, it is natural that the demand to accommodate for a certain period. Still, the year will be much more positive for the sector, which is expected for the vast majority of industrial sectors. "Buying furniture is not a habit that you have every year, because they are durable, but still it is a fact that, regardless of possible uncertainties, furniture sales in December should reach a value of 62% higher than the average monthly sale in relation to the remainder of the year," said Prado, which should help to dump stocks of stores and move production at the beginning of next year.
Imports, exports and apparent consumption
For this year, the forecast is that the apparent consumption (result of the sum of production with imports less exports) close at an all-time high of 5.2%, equivalent to 514 million pieces; the participation of imported remain in 2.6% of internal consumption and of exported end 2013 at 3.0%, well below the registered last year.
With the new positioning of the exchange rate, it is expected that the export of wooden furniture earn a little more breath and help promote national production in 2014.