Feb. economic indicators mixed from Jan.; most better than last yr.
By Janice Chamberlain -- Furniture Today, April 12, 2004
HIGH POINT — HIGH POINT — Compared with month-earlier figures, February economic indicators affecting the furniture industry once again offered mixed results. However, with the exception of furniture factory employment, the indicators are positive compared with year-ago numbers.
Sales of existing homes in February were 6.12 million, up 2% compared with January and up 5.7% over February 2003 results. New home sales for February of this year were up 5.8% compared with January and achieved a huge 24.4% increase over February 2003 figures. Sales of new homes reached 1.2 million in February.
The U.S. Departments of Commerce and Housing & Urban Development release statistics on new home sales, and the National Assn. of Realtors compiles statistics on sales of existing homes.
The furniture producer price index, compiled by the Bureau of Labor Statistics, was up a bare 0.6% against January numbers and moved up 0.8% from February a year ago, indicating inflationary pressures remain low in the domestic industry.
According to the U.S. Bureau of Labor Statistics, furniture factory employment, which includes contract and residential production workers, was 570,000 in February, up 0.1% from January figures but down 1.7% from February 2003.
Recently released figures for March show employment inched up 0.6% over February and were off 1.1% from March 2003 numbers.
February furniture factory capacity, measured by the U.S. Federal Reserve Board, slipped 0.3% and grew 0.7%, respectively, from January 2004 and February 2003 results.
Consumer spending on furniture and bedding in February reached $74.2 billion on an annual basis. Furniture and bedding spending was down 0.9% from January and up 10.6% over the year-earlier period.
Consumer spending is tracked by the U.S. Department of Commerce and, if furniture spending continues at its present pace, will finish the year at $74.6 billion, up just over 4% from 2003's $71.6 billion.
At the end of last year, Commerce revised consumer spending data for 2003 and prior years. More information about the revision was published in the March 8 issue of Furniture/Today.
Privately owned housing starts took the greatest tumble in February, dropping 4% against January numbers. Compared with February of last year, housing starts increased 13.1%. February housing starts were 1.9 million. The U.S. Department of Commerce, through the U.S. Bureau of the Census, releases statistics on housing starts.
All February 2004 numbers are preliminary figures and subject to revision. Monthly figures represent annualized rates, except for the producer price index, factory capacity and employment.
| February indicators | ||
|---|---|---|
| % change from Jan. 2004 | % change from Feb. 2003 | |
| Source: Furniture/Today market research, U.S. Dept. of Commerce, U.S. Dept. of Labor, National Assn. of Realtors, U.S. Dept. of Housing & Urban Development, U.S. Federal Reserve Board | ||
| Sales of new single-family homes | 5.8% | 24.4% |
| Existing single-family home resales | 2.0 | 5.7 |
| Furniture producer price index | 0.6 | 0.8 |
| Furniture factory employment | 0.1 | -1.7 |
| Furniture factory capacity utilization | -0.3 | 0.7 |
| Consumer spending for furniture & bedding | -0.9 | 10.6 |
| Privately owned housing starts | -4.0 | 13.1 |
