British Furniture Manufacturers

Input price pressures continue for furniture makers

22 June 2022

Input price pressures continue for furniture makers
Furniture and lighting sales fall for the first time this year

The latest figures for May from the Office of National Statistics show that the retail price of household furniture barely changed from the previous month. Up 16.4% (April 16.5%) on the same month last year, which represents the ninth month that annual increases have been above 10%.   

The average factory gate price of furniture was up by 9.2% on May 2021, slightly down on 9.3% recorded in the previous month of April.

Driving these increases are the costs for furniture manufacturers of materials and fuel which compared to May last year reached an equal high of 22.3%, the same figure as April and the tenth month of cost increases at or above 20%.

The Consumer Prices Index (CPI) rose by 9.1% in the 12 months to May 2022, up from 9.0% in April. This is the highest CPI 12-month inflation rate in the National Statistic series, which began in January 1997.

The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 7.9% in the 12 months to May 2022, up from 7.8% in April. 

RPI, the other measure of inflation, favoured by trade unions, rose by 11.7% in the 12 months to May, up from 11.1% recorded in April; the highest level for 40 years..

According to ONS – ‘Prices for furniture, household equipment and maintenance rose by 11.0% in the year to May 2022. The resulting contribution of 0.60 percentage points was the highest from this division in the National Statistic series, which began in January 2006’.

The weekly value of furniture and lighting sales in May fell on average by 9.3%, compared to May last year. This is the first fall in sales since the end of last year and confirms anecdotal information from members of declining order books.. This follows growth in the previous months of:

Jan 46.5
Feb 37.6
Mar 45.5
Apr 10.6

The volume of sales fell even further and is recorded by the Office of National Statistics as a drop of 20%.   

However, despite this fall, the monthly sales values for May stood at £1.24 billion, only 3.8% less than in April and slightly higher than the February figure, and is partly a reflection of comparatively high retail prices.   

Related articles:

UK furniture output drops in the month by is up on pre-pandemic levels
High input costs and soaring retail prices show little sign of easing
Furniture a major contributor to fastest pace of inflation for 30 years
UK furniture production below pre-pandemic levels
Record furniture retail prices while monthly making costs continue at 20% level
Furniture a major contributor to fastest pace of inflation for 30 years
UK furniture output rises
Record rise in the retail price of furniture while costs for UK manufacturers up 22% on last year
Third consecutive month of costs above 20%
UK furniture makers’ turnover and orders at record level
Household furniture prices rise by over 10% and manufacturers costs by nearly 21%
Costs for UK furniture manufacturers continue their relentless rise
Furniture manufacturers turnover up but still well below pre-pandemic levels
Furniture costs & prices rising sharply while retail sales hit a record high
Surge in demand for furniture ahead of shift to social spending
Retail prices and costs reach highs while Chinese imports surge

Join us

For more information: info@bfm.org.uk.

 

Back to news & blogs