Share this on

Aktrin: Spending growth to slow

Michael J. Knell -- Furniture Today, January 23, 2005

Oakville, Ontario — Growth in Canadian consumer spending on furniture and bedding will slow in 2005, reflecting an increasingly sluggish housing market and largely satisfied pent-up demand, according to research company Aktrin Furniture Information Center here.

"The Canadian furniture market (at retail prices) has been plowing ahead without interruption since the third quarter of 2002," Aktrin President Stefan Wille wrote in the January issue of Furniture Economics. "However, parallel to the retreating residential housing construction, growth this year will be somewhat slower at an anticipated rate of 5.2%."

He noted that growth in real disposable income was 3.3% in 2005, and predicted it would slow to 3.1% in 2005.

After several years of stellar performance, Wille believes the Canadian housing market is oversupplied, and anticipates a drop in new units from 227, 000 in 2004 to 200,000 this year.

While overall consumer spending in Canada has consistently grown at around the 3% mark for the past couple of years, expenditures on durable goods have been less buoyant, dropping to a growth rate of 2% in 2003 from the prior year's 8.3%.

"As interest rates started to inch up, and since the accumulated pent-up demand is largely satisfied, spending on durable consumer goods decelerated significantly and fell to 1.7% in 2004," Wille said. "We expect durable consumer goods growth to be in the 3.6% range for this year."

Including sales taxes that average 15% nationally, Aktrin said Canadian consumer spending on furniture should total C$9.4 billion in 2004, up 8.1% from C$8.7 billion in 2003.

"The market value should reach C$9.9 billion in 2005 and exceed the C$10 billion market in 2006," Wille said.

Share this on

Aktrin: Canadian spending to grow 4.4% in ?07

Oct 15, 2006

After strong '04, Canadian spending expected to slow

May 15, 2005

Canadian spending on furniture to slow

Apr 18, 2005

Aktrin: Canadian furniture sales to slow in '07

Jul 29, 2007

Aktrin projects slower growth in Canada

Jun 1, 2007

Also by this author

Also by Michael J Knell

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more

Related Resources

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.