Brazilian furniture production now stable overcoming uncertainties

Published on : Friday, August 14, 2020

Brazilian furniture production is once again stable and records a growth of 53% over the previous month. Exports also increased in May and June and entrepreneurs are optimistic about the second half of the year. With the gradual resumption of activities, after a period of quarantine when companies were closed or operated with reduced teams, the Brazilian furniture sector has shown a reaction.

The data can be found in the report “Conjuntura e Comércio Exterior do Setor de Móveis no Brasil” (Furniture Industry Overview and Foreign Trade in Brasil), with figures from May and June, produced by IEMI – Market Intelligence, and commissioned by the Furniture Industry Association of Rio Grande do Sul (Movergs), the organizer of FIMMA Brasil.

Furniture production in Brazil amounted to 22 million pieces in May, an increase of 53.4% when compared to the previous month. Rio Grande do Sul, the leading national furniture manufacturing region, also reported a 42.1% increase in comparison with April.

Both in May and June, Brazil’s exports showed a positive response. While in May there was a 25.9% increase, totaling US$ 36.4 million compared to April, in June there was a growth of 18.9%, amounting to US$ 3.3 million. Rio Grande do Sul also showed an increase of 27.6% in exports in May and 18.6% in June. As a result, the Brazilian balance of trade in June was positive with a surplus of US$ 24.8 million.

The International Director of Movergs and FIMMA Brasil, Marcelo Haefliger, points out that because of the pandemic, all countries are going through very similar problems, including lockdown, quarantine and financial aid to the population by governments. “Because people have stayed at home for longer periods, they began to care more about their comfort and needs for everyday products. The Brazilian retail market shows that in June there was a rise in sales of household appliances, furniture and mattresses, which consequently led to a greater demand from manufacturers and the same thing is happening in other countries. At the moment, sales to other countries are related to companies that had already been working with e-commerce, that is, those who were prepared were able to benefit more quickly. The prospect in the coming months is that demand for exports of products will return to normal, similar to the levels before the pandemic, not only for e-commerce, but for all markets”, he added.

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