The office furniture market is set for a boost throughout 2007 as growth continues to move along moderately, according to US firm HNI.
Posting a better than predicted profit margin for the second quarter of this year, the office furniture maker stated that it is currently in the process of cutting various business costs in light of its shares rising by 7.9 per cent.
Reuters claims that analysts have been buoyed by the solid performance of the office furniture manufacturer as it provides a good marker for the rest of the sector.
According to the news agency, the office furniture market in the US has seen growth diminish at the present time, with the double figure growth seen two years ago, replaced by five per cent this year.
Speaking to Reuters, Morningstar analyst John Gabriel stated: "The fact that it didn’t drag on the whole company was a surprise. That’s why you’re seeing the upside here."
Although Stan Askren, chief executive of HNI, explained in a statement that the firm had been losing money in terms of its hearth business, it is the office furniture sales which are positively impacting on his firm.
HNI is the second largest office furniture company in the world, according to its official website.