Heated domestic market reflects in good numbers in the furniture and bedding industry and retail

The furniture and bedding / mattresses production in Brazil reached 31.7 million pieces in May 2021. This number represents an increase of 6.5% in the volume produced compared to the previous month. The information was disclosed by ABIMÓVEL – The Brazilian Furniture Manufacturers Assocation, through their monthly report commissioned by the entity and developed by IEMI – Market Intelligence.

The increase during the month, after a decrease of 18.3% in April compared to March, once again pushed the year to date upwards, with the results from January to May 2021 showing growth of 29.5% over the same period in 2020. It is worth remembering that furniture production in the second quarter of last year was abruptly hampered by physical restrictions imposed during the first wave of the Coronavirus pandemic in Brazil. Even so, the indicator for the year to date, which is only increasing month by month, shows a sustained and heated activity in the Brazilian furniture industry in 2021.

Volume de peças produzidas em milhões

As a comparative factor, production results in the manufacturing industry as a whole increased by 8.5% in May 2021. This percentage reflects an increase of 14.7% in the accumulated result for the first five months of the year compared to the same period of the previous year, in which all industrial sectors around the world were affected by the pandemic. Such a panorama makes clear the relevance of the numbers reached by the furniture industry in the period, superior to other important productive sectors in Brazil.

Apparent consumption of furniture and bedding / mattresses in May 2021 was also higher than in April: 30.1 million pieces. Thus, representing a growth of 8% in relation to the previous month and bringing back the indicator to around thirty million, the average for the last few months. There was also an increase in the year to date: +26.8%. The share of imported products in domestic consumption was 3.7% in May, compared to 3.1% in April.


Employment rates and average wages in the furniture industry

With the increase in the volume produced as well as in the apparent consumption of furniture and bedding / mattresses in the country, employment rates in the furniture industry also increased in May: +0.1% after falling 0.8% in the previous month. Although apparently timid, this result brings with it a significant jump in employment data in the year, which went from 3.6% to 6% from January to May 2021 in comparison  to the same period in 2020.

The number of worked hours also increased: +3.9% over April and 21.4% in the year. There was also a growth in the average salary, with an increase of 2.4%, reaching R$ 1,531.22 in May 2021, when compared to the previous month. The number already reveals a 3.1% growth in the year. Positive indicator for both industry and the national economy, with labor productivity still growing 2.5% in May over April and 6.7% from January to May 2021.


Trade balance showed different behavior in May and June

If domestic consumption returned to growth in May, the international market, on the other hand, showed a decline in recent months: exports of furniture and bedding / mattresses fell 3.4% from April to May, totaling US$ 80.6 million in businesses; followed by another drop in June, -9.2%, reaching the amount of US$ 73.1 million, according to the criteria evaluated by the IEMI.

Still, against the previous month, Brazil imported around US$ 20.9 million in furniture and bedding / mattresses in May 2021, which represents an increase of 34.3% compared to April, when there was a 25.3% decline in imports. In the following month, in June, imports grew again, this time 4.2%, totaling US$ 21.7 million in businesses.

Good news in the retail market

With the heated domestic market, therefore, sales in the domestic retail trade grew by 14.1% in the volume of items sold in May over April 2021. In the accumulated result for the year, the indicator registered an even greater variation, in the order of 21.8%. Sales in values also registered growth both compared to the previous month (+15.3%) and in the year (+26.3%).

Another excellent indicator for the furniture sector is that, different from the market forecast, domestic furniture prices decreased in July 2021 compared to the previous month. According to the Broad Consumer Price Index (IPCA) of the IBGE – Brazilian Institute of Geography and Statistics, there was a 0.16% drop over the months. Even so, the retail index has accumulated growth of 4.97% in the year — lower than in June, when it was 5.1%. It is still too early, however, to point to a decreasing pace in market pricing.

ABIMÓVEL, however, continues to coordinate and work with producers in the supply chain and the public sector in the search for solutions that can mitigate obstacles and optimize processes in our industry. Enabling, among other necessary actions, the reduction of costs, more competitive prices and in accordance with the national market, as well as the improvement in the supply of raw materials and production inputs for the furniture industry.


Associação Brasileira das Indústrias do Mobiliário – ABIMÓVEL

Imprensa: press@abimovel.com