This downturn in factory output reflects mainly a decline in domestic demand. Also, in the first two months of this year Brazilian furniture exports totalled only $85 million, a 14% decline compared to the same period in 2014.
Furniture prices have increased by almost 4.5% over the past 12 months and this is mainly the result of higher production costs driven up by rising energy costs.
While some 1,900 new jobs were created in the furniture sector in January only 24 new posts were registered in February. Overall employment in the Brazilian furniture manufacturing sector as of February this year was 275,173 of which 39,308 posts were registered in Rio Grande do Sul state.
