VDM forecasts turnover at pre-crisis level for 2012

According to a projection made by the German Furniture Industry Association (VDM), turnover among German furniture manufacturers in 2011 showed year-on-year growth of roughly 6% to €16.7bn. The growth now quoted at 6% for the whole of 2011 is significantly higher than the forecast of 2% to 3% made a year ago. Good turnover was primarily attributable to the business trend in the first half of the year, which was considerably livelier than that of the second half. However, German furniture manufacturers were under pressure in 2011 on account of much higher material and wage costs which had a negative effect on the profit situation. For 2012, the VDM is currently forecasting lower turnover growth of up to 3%, against the background of the uncertain economic situation meaning that the pre-crisis level of €17.2bn reached in 2008 would be reached again.