According to the fourth annual survey from TD Bank, furniture retailers remain optimistic and expect furniture sales to increase. The survey was conducted at the High Point Fall Market and found that a majority (45%) expect furniture sales to increase through 2019 – an increase from 2018’s fall market (35%) – reflecting growing confidence from retailers, despite whispers of the looming economic downturn.
The Federal Open Market Committee decided to cut the federal funds rate yet again today, lowering its target range to 1.5% to 1.75%. This marks the third time the Fed has cut rates in as many months.
According to the FOMC itself, “Although household spending has been rising at a strong pace, business fixed investments and exports remain weak.” The Committee also noted “implications of global developments” and “muted inflation pressures” as reasons behind the change.
The reduction was largely anticipated by experts and is the third consecutive cut from the Committee. The trend began at the FOMC’s July meeting, when the majority of members voted for the first rate cut in nearly a decade.
HIGH POINT — Most retailers surveyed at the recent High Point Market by consumer financing provider TD Bank expect business will increase or remain steady in the second half of the year, reflecting either a decline in confidence from where retailers stood the same time last year or a big increase, depending on how you parse the data.
Selling financing options can be tricky. Mike Rittler at TD Bank gives dealers a five-minute pep talk.
HIGH POINT — What does the near future look like for the relationship between the furniture retail business and consumer credit? How will current economic conditions affect the lease-to-own market, and other vehicles that facilitate furniture transactions?
