20 | Sector Market Update: Hardwood
SUMMARY
■The first cut of interest rates this year is not expected until August
■Freight rates are back on the rise ■The prime customer sector, joinery, has slowed
■Demand for hardwood engineered wood products is increasing
OUTLOOK UNKNOWN
Hardwood suppliers sum up the prevailing market mood as one of uncertainty and caution. Mike Jeffree reports
One UK hardwood importer-distributor described the market going into 2024 as “limp”. That sums up the trade consensus. The backdrop to what another importer described as “sludgy” trading is a continuing slow-moving UK economy. It fared better than forecast in 2023, with KPMG estimating GDP up 0.5% rather than contracting the 1% expected earlier. But with fourth quarter contraction of 0.3% in the economy just announced, it forecasts 2024 growth will hover around 0.5% and only reach 1% in 2025.
The Bank of England also says inflation remains too high. So, it’s maintaining interest rates at 5.25% for longer than hoped. The first 2024 cut of 0.25% is not expected until August, with a second to 4.75% in November.
Above: Iroko availability is down and prices are firming TTJ | March/April 2024 |
www.ttjonline.com
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