PIERS reports surge in furniture imports
Attributes rise to home sales incentives
Thomas Russell -- Furniture Today, July 13, 2010
NEWARK, N.J. — A rise in home sales spurred by U.S. government incentives caused a surge in furniture imports and other goods from China during the first half of the year, according to trade data research firm PIERS Global Intelligence Solutions.
The analysis by PIERS - short for Port Import Export Reporting Service - found that the second U.S. economic stimulus package for first-time home buyers caused a 20% increase in containerized U.S. imports from China in May, followed by an 8.1% surge in April. Year to date, those same imports rose 12.2%, PIERS said.
PIERS also attributed to the stimulus an overall 18% surge in furniture imports in May, compared with May 2009.
"The tax credit for first-time home buyers appears to be the reason for the early increase in traffic," said PIERS economist Mario Moreno in a statement. "Homeowners seeking to furnish their new residence are stimulating an increase in the furniture category."
The analysis found that furniture imports from China rose to 114,000 20-foot equivalent containers in May, up 17,378 from May 2009. However, it expects the trend in furniture imports to reverse due to high unemployment, tight credit conditions and no new housing stimulus initiatives.
The most recent housing stimulus, which gave up to an $8,000 tax credit to first-time home buyers, required those purchasers to sign a purchase contract by April 30 and to close by June 30. That deadline has recently been extended to Sept. 30.
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