The balance of the year is expected to lag the previous year. Future action by the Federal Reserve is still of primary concern. The question now is whether it will lower interest rates to stimulate the economy. With unemployment rates rising and the rate of GNP growth declining, pressure is increasing to take some positive action. However, with retail sales still showing significant growth, it is likely the Fed will leave interest rates alone for a while.
Inflation seems to be under control.
The office furniture industry is reporting greater price increases then expected for the general economy. While the economy as a whole reports inflation of about 2.5 percent, this industry reports price increases of about five percent. This trend is likely to continue because the industry's price increases have lagged behind the economy for several years.