HIGH POINT, N.C. — New residential furniture orders rose 1% in December compared to the same period in 2023, according to the February issue of Furniture Insights, reversing the previous month's decline. Approximately two-thirds of respondents reporting increased orders in December compared to the year prior.

However, compared to November 2024, December new orders dropped 15%, although that could include some seasonality due to the December holiday break, noted Mark Laferriere, assurance partner at Smith Leonard, the accounting and consulting firm that produces the monthly report. New orders were also down for the year to date, by 1%.

December shipments were down 2% compared to 2023 figures, and also down 7% with November 2024. Year to date through December 2024, shipments were down 6% compared to 2023. Backlogs were down 8% compared to December 2023, but up 2% from November 2024 "as current shipments outpaced new orders during the last month."

"Receivable levels were down 7% from November 2024, and down 3% from December 2023, both of which are materially in line with the respective shipment trends, given normal timing differences with collections," Laferriere noted. "Inventories were consistent with November 2024 and down 2% from December 2023, which are in line with prior periods and current operational
levels," he added.

On a seasonally adjusted basis, sales at furniture and home furnishings stores were down 1.7% in January compared to the previous month but up 3.7% from January 2024, according to the February Furniture Insights.

Tariffs, both existing and potential, continue to impact American business and spending, making projections difficult, Laferriere said. "While the housing data was mixed, consumer confidence really took a hit this month, so it will be interesting to see whether this is the start of an enduring trend or hopefully just a temporary blip that will reverse itself once much the current uncertainty is resolved."

He added, "The Home Furnishings Sentiment Index published by Furniture Today was similarly mixed, but reflected long-term optimism for the industry, which is consistent with what we’ve heard from many we’ve spoken to recently.

"And the furniture industry does seem to be gaining a little momentum based upon recent industry reports, year-over-year retail data, as well as our own survey’s modest increase in new orders this month. However, it remains to be seen the extent these economic policies will have on the 2025 outlook for the industry and beyond."