The significant Slowdown in world trade of the Home Supply Chain
New trend decline in world exports measured in constant prices in the first quarter of the year
Published by Marcello Antonioni. .
Slowdown Home items Conjuncture Check performance Industries Uncertainty Global economic trends
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World trade data for the first quarter of 2023 (StudiaBo pre-estimates), available in the ExportPlanning Information System, confirm the difficult phase of international sales of products in the home supply chain, both upstream (within goods and construction products1) and downstream (with reference to household products).
In particular, in the period January-March 2023 world exports - measured at constant prices3 - of the Home System achieved the fifth trend decline, on a quarterly basis,
consecutive, with a decrease of -6 percent compared to the first quarter of 2022.
This decline is common to to most of the sectors included therein, described below.
Building Materials and Products
As the graph below shows, in the first quarter of the year, world exports of goods and construction products showed a new downward trend at constant prices (-7.4%), for the third consecutive quarter.
Moreover, the phase of deterioration of international trade in these products is also evident in values denominated in euro: after the +16.3 percent of the 2022 average, in the first quarter of 2023 world exports of sector confirm a still positive trend - but in significant slowdown -, with a growth trend of +4.3%.
The downward trend in world exports at constant prices has affected all the main sectors of the industry
The downward trend in world exports at constant prices involved all the main sectors of construction goods and products.
The most penalized sector appears to be that of flooring4, with a tendential drop close to 15 percentage points in the measurement at constant prices, which moreover follows an average annual drop in 2022 of more than 8 percentage points (proof of the fact that the ongoing downsizing phase has a long "tail" in this sector).
We also note the trend reductions in world exports - measured at constant prices - of sanitaryware and other bathroom products5 (-8.3% compared to the first quarter of 2022), taps and valves6 (-4.4 %), doors and windows7 (-4.2%), as well as other construction goods and products (-6.4%).
World Exports of Building Materials and Products
| Values 2022 | % Y-o-Y changes at current prices | % Y-o-Y changes at constant prices | |||
| Sector | (Bn €) | 2022 | Q1-2023 | 2022 | Q1-2023 |
| Faucets and Valves | 59.5 | +14.8 | + 8.4 | - 0.1 | - 4.4 |
|---|---|---|---|---|---|
| Flooring | 41.3 | +18.2 | - 3.6 | - 8.4 | -14.9 |
| Doors and windows | 35.1 | +22.9 | + 6.5 | + 1.7 | - 4.2 |
| Sanitaryware and other bathroom products | 18.6 | + 7.5 | - 1.1 | - 6.5 | - 8.3 |
| Other building materials and products | 61.6 | +15.9 | + 6.4 | - 3.8 | - 6.4 |
| TOTAL | 214.3 | +16.3 | + 4.3 | - 3.1 | - 7.4 |
Source: ExportPlanning-World Trade Datamart
Household Products
Also in the field of household products the first quarter of the year marked a new trend reduction of world exports measured at constant prices (-5.7%), for the fifth consecutive quarter.
Also in this case the phase of deterioration of international trade in these products is also evident in the values denominated in euro: after the +8.6 percent of the 2022 average, in the first quarter of 2023 exports world markets in the sector confirm a still positive dynamic, but in a significant slowdown, with a growth trend of just 1.6%.
The downward trend in world exports at constant prices involved almost all of the sectors considered
The downward trend in world exports at constant prices has affected almost all of the sectors of finished products for the home.
The most penalized sectors appear to be those of household appliances7, with a trend decline of more than 10 percentage points in the measurement at constant prices, confirming the yielding phase already experienced in the average of 2022 (-9.9%), and of furniture and furnishings8, which shows a downward trend of more than 9 percentage points (continuing the downward trend already recorded in the final balance of 2022: -9% when measured at constant prices).
We also note the trend reductions in world exports - measured at constant prices - of lighting technology9 (- 3.9% compared to the first quarter of 2022) and other household products (-5.6%).
On the other hand, recent trends at constant prices show signs of holding up worldwide sales of home textiles10 (+1.9% compared to the first quarter of 2022, but which follows the -9.4 percent annual average of 2022) and consumer electronics11 (+0.2% in the most recent quarter, after however the -4.4% of the 2022 average).
World Exports of Household Products
| Values 2022 | % Y-o-Y changes at current prices | % Y-o-Y changes at constant prices | |||
| Sector | (Bn €) | 2022 | Q1-2023 | 2022 | Q1-2023 |
| Household Appliances | 196.9 | + 3.9 | - 1.4 | - 9.9 | -10.5 |
|---|---|---|---|---|---|
| Consumer Electronics | 196.3 | + 7.7 | + 3.5 | - 4.4 | + 0.2 |
| Furniture and Furnishings | 107.2 | + 8.2 | - 3.1 | - 9.0 | - 9.4 |
| Lighting Technology | 65.7 | + 7.2 | + 3.8 | -12.2 | - 3.9 |
| Home Textiles | 49.8 | + 5.9 | + 9.3 | - 9.4 | + 1.9 |
| Other household products | 194.1 | +15.5 | + 3.0 | - 2.1 | - 5.6 |
| TOTAL | 810.0 | + 8.6 | + 1.6 | - 7.0 | - 5.7 |
Source: ExportPlanning-World Trade Datamart
Conclusions
The first quarter of 2023 confirmed what was already highlighted during the second half of last year, with a significant drop in world exports of the Home System's products, widespread in almost all the main sectors of this industry.
This evidence clearly shows how, after the strong growth achieved during the pandemic period (benefiting from an "exceptional" shift in consumer preferences in favor of purchases linked to domestic living), world sales of the home supply chain reflect - outgoing now since the pandemic emergency - a physiological readjustment of consumption habits, by the international community, more oriented towards mobility and opportunities for socializing outside the domestic environment.
1) For a description of the sectors included therein, see the related industry profile.
2) For a description of the sectors included therein, see the related industry profile.
3) The measure Quantities at constant prices (Q). This measure includes a deflation operation, in which the historical series of monetary values (V) has been transformed into an analogous series of values expressed at constant prices, with a reference to a given year, known as the base year. For a description of the methodology applied, please refer to Methodological Note on the World Trade Datamart.
4) For a description of the products included therein, see the relative sector profile.
5) For a description of the products included therein, see the relevant sector profile.
6) For a description of the products included therein, see the relevant sector profile.
7) For a description of the products included therein, see the relative sector profile.
8) For a description of the products included therein, see the relative sector profile.
9) For a description of the products included therein, see the relative sector profile.
10) For a description of the products included therein, see the relative sector profile.
11) For a description of the products included therein, see the relative sector profile.
