The German furniture industry has experienced a significant sales decline in the first half of 2024, with sales dropping by 9.7 percent, amounting to €8.3 billion. This downturn is largely attributed to consumers’ reluctance to make purchases, influenced by rising energy and food prices, as well as political uncertainty. According to Jan Kurth, Managing Director of the German Furniture Industry Associations, the industry may have reached its lowest point, with hopes for a seasonal upturn in the coming months.

Despite a slight improvement in the business climate, reflected in the Ifo Institute’s report, the industry is bracing for an overall annual decline of 7 to 9 percent. Domestic sales dropped by 9.1 percent, while foreign sales fell by 10.9 percent, with major export markets like France, Switzerland, and Austria showing significant declines.

In the first half of this year, according to official statistics, sales in the German furniture industry fell by 9.7 percent to 8.3 billion euros. On the domestic market, the 417 companies (with more than 50 employees) with a total of 71,841 employees generated sales of around 5.6 billion euros, 9.1 percent less than in the same period last year. Foreign sales declined even more sharply, falling by 10.9 percent to 2.7 billion euros. The export quota was around a third.

Kurth believes consumer uncertainty is driven by both economic pressures and political instability, affecting the overall consumer climate.

The mood in the furniture industry also fits in with this: in a recent association survey, companies cite the weak consumer climate as their greatest challenge by a wide margin. This is followed by the economic standstill in Germany, the excessive bureaucracy, the shortage of skilled workers and the increased wage, salary and energy costs. The stagnating construction of new housing is also a major concern. According to the latest association survey, 38 percent of the companies surveyed applied for short-time work in August. Around 40 percent of manufacturers are planning short-time work for the fourth quarter.
 
Source: German Furniture Industry Associations