HIGH POINT, N.C. — New orders for residential furniture dropped 5% in July compared to 2023 figures, continuing the trend of year-over-year declines in growth, according to the latest issue of Furniture Insights. New orders were also down compared to June 2024 by 9%.

Year to date through July 2024 however, new orders are up 2% compared to 2023, "though that spread has continued to narrow with the last three months; declines," said Mark Laferriere. assurance partner at Smith Leonard, which produces the monthly report. Approximately half of the survey participants, reported increased orders in July compared to a year ago. 

July shipments were also down compared to June figures, by 7%, but up 6% compared to July 2023. Compared to July 2023 figures, shipments were up for approximately half of the survey participants. Year to date through July 2024, shipments are down 7% compared to the same period of 2023. Backlogs were down 11% compared to July 2023, and down 3% from June 2024.

"Receivable levels were down 3% from June 2024, but flat with July 2023, which is hopefully timing rather than an indication of deteriorating customer credit,"  Laferriere noted. "Inventories were consistent with June 2024 and down 11% from July 2023,
which is in line with prior periods and current operational levels."

On a seasonally adjusted basis, sales at furniture and home furnishings stores were up 0.7% in August from the previous month, and also down 0.7% from August 2023. Sales were also down 5.1% for year to date August 2024 compared to the same period for 2023 on an unadjusted basis, the analyst reported.

Reflecting on the emotional and economic impact of Hurricane Helene, Laferriere commented, "And while it’s impossible to fully grasp the current or long-term impact this will have for the overall industry for an area that is so essential to the production and distribution of product nationwide, we know those within the industry are never short on resilience."

He added, "Consumer confidence really took a real beating in September and there wasn’t much to get excited about from the other national economic indicators in August/September either. However, the long-awaited interest rate cut finally arrived in September in the form of a half point reduction, with the potential for another quarter or half point in November, now that inflation has eased, and the labor market is not as tight in the Fed’s view. Unfortunately, the expected positive impact to housing and ultimately the home furnishings industry will not happen overnight.

"Meanwhile, ocean container rates continue to decline in September compared to summer peaks per the World Container Index, though as of this morning, there is now a port strike along the East Coast and Gulf of Mexico to contend with."

On a more positive note, Laferriere noted, "it’s almost time for the Fall Furniture Market here in High Point and we look forward to seeing many of you in town later this month."