| Furniture Production The United Kingdom is the fourth
largest European supplier of furniture and it produced around 10% of the supply in Europe
in 2001 for a value of Euro 7,467 million.
According to CSIL estimates, in 2001 furniture production was stagnant (+0.3% at
current prices). However, it should be pointed out that due to the changes in exchange
rates between Sterling and the Euro the picture is different if considered in local
currency: furniture production increased by 2.4% (at constant prices) in 2001 whereas in
2000 it contracted. According to the first 8-month's statistical data, in 2002 the nominal
production of furniture increased by 5.9% compared to the same period of the previous
year.
In 2001 office production recorded a drop of about 3% in nominal terms. The number of
workers in this segment was about 13,000. The supply of upholstered furniture was
stationary at current values but production of kitchen furniture recorded an increase of
7% at current prices, compared to 2000.
Furniture Prices
According to Csil estimates, production prices of furniture increased by 0.6% in 2001,
this following a trend of reduced inflationary dynamics that affected the manufacturing
sector as a whole. The principal cause of this trend was the reduction in the prices of
physical input, especially of those imported materials, due to the strength of sterling.
According to first 8 month statistical results, in 2002 furniture prices were stationary
(0.0%) compared to the same period of the previous year.
Furniture Demand
The United Kingdom is the third European country in terms of apparent domestic
consumption with a quota of 13.5% of the total. According to Csil estimates, UK domestic
consumption of furniture follows a positive trend. In 2001 growth was lower than the
previous year, recording 5% at current rates to reach a value of Euro 10,039 million.
Yearly change in real terms for 2002 has been estimated to 3% and forecasts for 2003 and
2004 are 2% and 1% respectively, according to Csil forecasts.
The office furniture segment recorded a drop, as it did in the majority of European
countries.
In 2001 domestic consumption of upholstered furniture recorded growth of 6% at current
prices compared to 2000. The consumption of kitchen furniture continued its growth trend,
after the drop recorded in 1998. In 2001 kitchen furniture recorded an increase of 6%.
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