GERMANY – The German furniture industry saw a significant drop in sales in the first half of 2024, falling by 9.7 percent to EUR 8.3 billion.

This decline is mainly due to consumer reluctance influenced by rising energy and food prices and political uncertainty. Jan Kurth, Managing Director of the German Furniture Industry Associations, suggests the industry may have hit its lowest point, with hopes for a seasonal recovery in the coming months.

Despite a slight improvement in the business climate according to the Ifo Institute, the industry anticipates an overall annual decline of 7 to 9 percent. Domestic sales decreased by 9.1 percent, and foreign sales fell by 10.9 percent, with major export markets like France, Switzerland, and Austria seeing significant drops.

In the first half of 2024, sales in the German furniture industry dropped by 9.7 percent to EUR 8.3 billion. Domestic sales, by 417 companies (with over 50 employees each), totaled around EUR 5.6 billion, down 9.1 percent from last year. Foreign sales decreased more sharply by 10.9 percent to EUR 2.7 billion, with exports constituting about one-third of sales.

Kurth attributes consumer hesitation to economic and political factors impacting the overall climate. A recent survey shows companies view the weak consumer climate as their biggest challenge, followed by economic stagnation, bureaucracy, a shortage of skilled workers, and rising costs.

Additionally, 38 percent of surveyed companies applied for short-time work in August, with around 40 percent planning it for the fourth quarter.