Article Abstract:
The Federal Reserve's decision to raise short-term interest rates by 1/4% is expected to have a major effect on the home construction industry which will be reflected in the home furnishings and furniture industries' economic performance. Most industry observers expect that with fewer housing starts there will be fewer furniture purchases, but some predict the possibility of future interest rate boosts may inspire immediate purchases. The office furniture industry should perform well for investors and be unaffected by interest rates.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Economic recovery was absent from the furniture/home furnishings industry during the 2nd qtr of 1996, although interest rates were stable and housing starts increased. Sales and earnings for the 2nd qtr of 1996 have also been weak, even though results have been aided by cost-cutting efforts and by manufacturers' inventory reduction. There are few timely stocks in this industry, although several have potential from 1996 through 1999-2001.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Furniture industry stock prices have underperformed the market since 1994 due to sluggish sales and high fixed furniture plant costs. Several companies are installing computerized and state-of-the art equipment to modernize their facilities. Furniture orders are smaller, however, since retailers are reducing inventories. These stocks are not timely and investors will find few selections in this industry.
User Contributions:
Comment about this article or add new information about this topic: