Over the last decades Canadian Packers Household Pimple Saudagar furniture purchases increased from about $5,072 million in 1996 to $11,049 million in 2006, or more than two times Total annual sales in 2006 exceeded the 1989 pre-recession peak by a widening margin. Sales increased at an average annual pace of 7.3% between 1996 and 2006. The fastest pace was in 2000 when growth was almost 10%. The slowest pace was in 1996. In fact, furniture sales fell by -0.7%. Growth in 2006 was healthy lying in the 8.8% range.
Average prices of household furniture went up by 8.7% between 1996 and 2006. The strongest inflationary pressure occurred in 1999. On the other hand, prices fell in 2004 and 2006. The path of price change for the household furniture sector tends to mirror that for consumer prices overall, but – on average – furniture price increases have been of a lesser magnitude. Over the period from 1996 to 2006 household furniture spending measured in constant 1997 dollars increased from about $5,103 million in 1996 to $10,227 million in 2006 or just a bit over 100%. Thus much of the growth in spending in current dollar terms over this period was due to the changes in prices.
Over the period from 1996 to 2006 real spending on household furniture grew at a pace averaging close to 6.5 percent per year, though the rate from year to year varied significantly. In 1996 real household furniture spending did not perform well, falling on a year-ago basis by 0.8 percent. Since 1997, however, the pace of real household furniture spending in Canada has been strong, ranging from 5.4 to 10.4 percent per year. Furniture sales in constant 1997 dollar terms in 2006 were 65 percent higher than they had been in 1989, the previous peak year for household furniture sales in Canada.
Canada’s total population will grow by 8.1% between 2006 and 2016 propelled mainly by a net in-flow of immigrants. Furthermore, the total number of households will grow by 9.5% over this period, or faster than the gain in population, reflecting a continued gradual decline in the number of persons per household due to the aging of the population. Thus, even if the amount spent on furniture per household was to hold steady in real terms at the $860 level of 2006 the furniture market would grow by 9.5%.
We expect after tax income to grow in real terms by approximately 23% between 2006 and 2016 reflecting three factors: output per worker growth of about 1.5% per year which supports real average wage gains of a similar amount over that period, a slightly rising ratio of employed persons per household reflecting the aging of society into the higher labor-force-participation-rate middle-age groups, and further slight declines in the personal tax load at both the federal and the provincial level in Canada.
Together the above factors translate into an increase of 33% in real terms in the total market for household furniture in Canada between 2006 and 2016. In other words we expect furniture sales in constant 2006 dollars to reach a total of $ 14,663 million compared to $ 11,049 million in 2006.
