Wouldn’t it be nice to have a little good news?  Consumers still seem unwilling to buy anything unless it is offered at substantial discount, delivered for free and make them look ten years younger and five pounds thinner … with a free wrinkle remover.  But we are seeing some signs of life in a channel that does not usually lead an economic resurgence -- commercial furniture.

It is usually the home and small business consumer that generates the demand that spurs the larger companies to expand capacity, thus requiring office furniture.  However, in this cycle, the larger corporations that have been holding on to cash generated by two years of productivity gains, mostly from cutting staff, are freeing up some of these funds and  cycling them back into the economy.  The commercial furniture manufacturer’s association (BIFMA) has reported a recent but steady double-digit increase in both bookings and sales from manufacturers that represent over 70 percent of domestic capacity.

It is too early to tell if this surge in commercial furniture demand is a short-term phenomena or if this is a reflection of a directional change in general business economics.  Space allocated per employee is continuing to shrink and use of more open architecture in design reduces demands for cubicles, but commercial sales are up.  Could we see “trickle-down economics” work to the benefit of small businesses?

While sales were fairly robust for retailers this holiday season, especially via the Internet, substantial discounting was required to attain consumer mindshare.  This usually results in revenue gains without benefit of improved earnings performance.  But if core industries begin to purchase discretionary items like furniture, can at least a bit of a recovery be far behind?

No economist is projecting massive improvements in unemployment anytime soon, or quantum leaps in consumer confidence, but it is nice to see some indication of the inklings of an economic turnaround.