Furniture industry still optimistic but fall in gross profit margins, BFM survey warns
The British Furniture Manufacturers (BFM) has published its latest state of trade survey along with its annual survey of financial ratios.
According to the report, "the industry continues to feel optimistic about the general business situation despite lower output levels and fewer new orders that were initially hoped for in February this year, when the last survey was undertaken".
The BFM underlines that more companies "are still reporting increases in raw material costs that those reporting falls, although the gap is closing and the inference is that for many products costs are at least stabilising or falling".
"Export performance was disappointing showing the worst performance for over 2 years in terms of the number of companies reporting sales overseas", the survey warns. "Gross profit margins have declined which infers that more money is being spent on direct labour and/or materials than can be recovered through price increases.".
More details on BFM website.