HIGH POINT, N.C. — New residential furniture orders were essentially flat in October compared to 2023 figures, putting an end to five straight months of year-over-year declines, according to the December issue of Furniture Insights. Approximately 50% of the survey participants reported increased/decreased orders in October compared to a year ago.
However, new orders were down 2% compared to September 2024 figures and were flat for the year-to-date, noted Mark Laferriere, assurance partner at Smith Leonard, the accounting and consulting firm that produces the monthly report.
October shipments were down 5% compared to 2023 figures, but up 4% from September 2024. Year to date through October 2024, shipments were down 7% compared to 2023. Backlogs were down 8% compared to October 2023, and down 2% from September 2024 "as current shipments outpaced new orders during the last month."
"Receivable levels were up 6% from September 2024, but down 7% from October 2023, both of which are materially in line with the respective shipment trends," Laferriere noted. "Inventories were consistent with September 2024 at up 1% and down 8% from October 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 essentially flat in November compared to the previous month but up 0.1% from November 2023. Sales were down 3.3% for the year to date, November 2024, compared to the same period for 2023 on an unadjusted basis, according to the December Furniture Insights.
"We continued to see many of the national economic indicators trending in the right direction this month, particularly an increase in existing home sales, and industry reports about last month’s Black Friday and other holiday retail sales activity have been largely positive. In addition, inflation has slowed enough to allow the Fed to make another 0.25% interest rate cut in December," Laferriere said.
"Meanwhile, the impact of potential tariffs and labor restrictions has many developing contingency plans and evaluating their options, while simultaneously monitoring the looming East/Gulf Coast port strike and what effect that will have on logistics and already rising container costs.
"Despite these challenges, recent reports project modest growth for the coming year with many in the industry relatively optimistic about the prospects for 2025 and beyond," he said.
"After several months of year-over-year new order declines, our monthly stats do seem to suggest that the collective tide may be turning, so like many others, we are hopeful there is enough lasting positive momentum to outweigh the potential negatives, and that with a little luck and a lot of hard work, those that “survived until 2025” will be rewarded for their efforts."

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