Article: AREA RUGS TO CONTINUE GROWTH.

BETTER PRODUCTS, HARD SURFACE, MORE CHANNELS -- ALL CONTRIBUTE TO DEMAND

CLEVELAND -- Area rugs are expected to continue to outpace broadloom through 2002, according to The Freedonia Group, an industrial market research firm based here.

A study, Carpets & Rugs, was published by Freedonia last month, which details its predictions for the next four years.

U.S. carpet and rug manufacturers' shipments are expected rise 3.5 percent annually through 2002 to 2 billion square yards, valued at $12.4 billion. Freedonia attributes its expectations to healthy outlooks for both residential and nonresidential repair and renovation spending.

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