Furniture/home furnishings industry

The furniture and home furnishings industry should experience modest earnings gains, despite increasing mortgage rates and a slowing of home building activity. Interest rates continue to be low historically, which should not cause a dramatic decrease in home purchases. The residential furniture sector continues to be dominated by manufacturer-retailer alliances, and office furniture suppliers are becoming more automated and focusing on the development of ergonomic products. Investments in this industry have suffered double-digit losses in 1994, a situation not likely to improve in 1995.