The British Furniture Manufacturers Association has revealed that business confidence turned negative as both output and order intake levels dropped in its latest report.
Over the four month period to October, including the Brexit decision, the BFM’s latest State of Trade Survey indicated that furniture manufacturers rose its prices due to raw material price hikes.
According to the survey results, 37% of firms raised factory gate prices between 3-10% to cope with the increased material price, which themselves ranged between 2.5-15%.
Timber, foam, fabric, leather, veneers and fittings saw prices rise, on average, around 7%, whilst board prices rose by 5%.
However, manufacturers said that order intake and output levels are ‘expected to improve’ in the coming months, over what is typically a busy period for companies within the industry.
The BFM also noted that there was a positive sign for employment growth over the period under review.
Mike Dimond, the BFM’s employment and membership affairs director, said: “While the Brexit vote was clearly followed by a period of uncertainty, our report also has a number of positive findings, particularly among exporters. The traditionally busy build up to Christmas appears unaffected although it is clear that the rising cost of raw materials is starting to be reflected in the end cost to consumers.”
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