
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, January 9, 1994                   TAG: 9401050281
SECTION: BUSINESS                    PAGE: F4   EDITION: METRO 
SOURCE: Sandra Brown Kelly Staff Writer
DATELINE:                                 LENGTH: Medium

EXCITEMENT OF '93 TAKES A SEAT IN '94

Because furniture retailers have had respectable sales in recent months, it follows that furniture manufacturers entered 1994 somewhat optimistically.

But the outlook this year is not as exciting as it was in 1993, says the American Furniture Manufacturers Association.

The trade group predicts real growth - adjusted for inflation - of 3 percent for the year. It projects that 1993 growth will come in at 6.4 percent.

In categories, the association anticipates sales of wood furniture, or casegoods, to be up by 4.8 percent against 1993's 6.8 percent increase. Growth in upholstered shipments is projected at 3.4 percent, down from 1993's 10.6 percent.

The forecast from Furniture Today, a trade publication, is even less optimistic.

Furniture Today's panel of economists projected slower growth for the industry in both 1994 and 1995. It expects inflation-adjusted consumer spending on furniture to grow 2.4 percent this year and just 1.1 percent in 1995.

"We're still expecting good growth in 1994, but we don't quite expect the growth we enjoyed in 1993," said Dennis Ammons, president of Singer Furniture Co. in Roanoke.

"Even though housing starts and other economic indicators show the first part of the year to be strong, we're not quite as optimistic."

Gerald Birnbach, chairman of Rowe Furniture Co. of Alexandria and Salem, said, "If interest rates stay down ... if home resales continue along the way they've been going the last few months ... if consumer confidence stays at this level or comes up, I think we can have a pretty good 1994."

by CNB