UK Furniture & Flooring Sector Report summary
February 2024
Period covered: Period covered: 31 December – 27 January 2024
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Furniture & Flooring sales
Furniture & Flooring sales fell by xx% YoY in January, according to the Retail Economics Retail Sales Index.
ONS data shows the wider Households Goods category faced flat shop price inflation in the month, pointing to a continued decline in sales volumes.
Harsh macroeconomic backdrop
Furniture & Flooring sales declined in January as households prioritised forms of discretionary spending away from the home.
Inflation remained unchanged at 4.0% in the month, undercutting economists’ forecasts of xx%. Combined with strong earnings growth and easing mortgage rates, weaker inflation saw consumer confidence edge up three points to -19 in January (GfK).
GfK’s major purchase index also increased by three points to -20, albeit both key confidence measures remain firmly in negative territory.
Notably, household goods put downward pressure on inflation in January, with the annual inflation rate from the furniture and furnishings, and carpets and other floorcoverings components falling to the lowest level since December 2020.
Housing market subdued
Furniture & Flooring sales are being affected by a cooling housing market, which is reducing demand for products purchased both within and outside house moves.
Average UK house prices rose on both an annual (+2.5%) and a monthly (+1.3%) basis in January, according to Halifax.
Although this reflects in part greater buyer confidence arising from improving macroeconomic indicators and easing mortgage rates, market conditions remain tough.
Indeed, Retail Economics’ analysis of provisional ONS estimates reveals a xx% YoY decrease in property transactions in December 2023 (non-seasonally adjusted).
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Housing transactions fall below pandemic-era peaks
Source: ONS
