CHICAGO -- According to Reuters, U.S. office furniture growth slowed once more in June, raising concerns among analysts that the market may be slowing. Reportedly, the Business and Institutional Furniture Manufacturers Assn. said industry orders rose 2% from the same period of 2005 to $1.075 billion. May had shown a double-digit increase in orders on the year, following a slower month in April.
"Although the results still show positive growth, it could lend credence to the prospect that growth in the office furniture space is moderating, particularly when taken with April's results," Budd Bugatch, analyst for Raymond James, wrote in a research note.
According to the report, BIFMA data showed a 7% rise in shipments in June to $1 billion. Despite the slowing of order growth in June, some analysts think the office furniture market remains robust.
"Improvements in key macro factors, including office vacancy rates, nonresidential construction and corporate spending, likely point to strong demand," Margaret Whelan, analyst for UBS wrote in a research note.
Have something to say? Share your thoughts with us in the comments below.