GERMANY - GERMANY - According to official statistics, the German furniture industry increased its sales by almost 7 percent last year to around 18.8 billion euros.

The key factor here was price adjustments due to the increase in material and energy costs. Domestic sales increased by 5.4 percent. Outside Germany, furniture producers achieved strong sales growth of 9.8 percent. The export ratio climbed to 33.2 percent. For the current year, the industry expects sales to remain at the previous year's level.

"German furniture manufacturers continue to find themselves in a difficult market environment, even if the situation is no longer assessed quite as pessimistically as it was in the fall," reported Elmar Duffner, President of the Association of the German Furniture Industry (VDM).

According to the Ifo Institute, the furniture industry was more confident again at the start of 2023. The business climate brightened slightly in January, and business expectations increased for the second month in succession. The industry is noticing an easing in material procurement. "Most preliminary products are now stably available again, and our delivery times are largely within the regular range," said Duffner.

For the current year, Jan Kurth, Managing Director of the German Furniture Industry Associations (VDM/VHK), forecast sales for the industry at the previous year's level. In the first half of the year, a subdued market development is to be expected, he said. A gradual economic recovery is expected in the second half of the year, he said, as consumer uncertainty wanes and the easing on the energy markets makes itself felt. "We are confident that furnishing will continue to be a high priority," Kurth said.