S&P Says Outlook for Consumer Durables Remains Negative

Standard & Poor’s has reiterated its negative outlook for the U’S’ consumer durables. And Thursday’s news that consumer spending dipped 0.2% in March after rising 0.4% in February offers no sign of relief.

Standard & Poor’s said its base case 2009 outlook for the U.S. consumer durables industry remains largely negative, based on the following fundamentals:

• Continued economic weakness in the U.S. and Europe;
• The extended housing downturn; and
• Weakness in global credit, equity, and housing markets

In total, about 39% of our universe of 18 rated U.S. companies currently have negative outlooks or are on CreditWatch with negative implications.

This number has remained relatively stable for the past year, given the continued weakness in the economy and housing markets.

S&P’s top rated companies in the sector are Steelcase (NYSE: SCS) and Herman Miller (NASDAQ: MLHR). The weakest are Simmons and Ames True Temper. For details click here.