BRAZIL - While August furniture exports increased by around 13%, this year has been tough for furniture manufacturers in Brazil. 

The contraction of the Brazilian economy has impacted all sectors and the furniture industries are no exception.

According to a report from the Market Intelligence Institute (IEMI), between January and June this year Brazilian furniture production, in terms of number of pieces produced, was down almost 15% compared to the first half of 2015. Over the same period furniture imports dropped around 13%. Perhaps of most concern is the indication from IEMI that productivity in the furniture manufacturing sector worsened.

To address the challenge of weak demand the Furniture Industry Association of Rio Grande do Sul (MOVERGS) says the solution is to maintain investment in advanced technologies and pay more attention to product design and market diversification.