HIGH POINT, N.C. — New residential furniture orders rose 1% in January compared to the previous month, and were flat compared to January 2025's numbers, according to the March issue of Furniture Insights. Approximately one-half of participants reported increases versus decreases in January compared to a year ago.

"Overall, January 2026 didn’t provide the sort of hot start we were hoping for from our survey participants as a whole," said Mark Laferriere, assurance partner at Smith Leonard, the accounting and consulting firm that produces the monthly report. "Hampered by weather and other challenges to start the year, new orders were flat and shipments were down 7% compared to 2025, respectively."

Shipments were also flat compared to December 2025, with two-thirds of survey participants reporting decreases compared to the year prior, Laferriere added. Likewise, January 2026 backlogs were flat compared to both January 2025 and December 2025.

"In what seems like an anomaly this month, receivable levels were up 15% from December 2025, but up a more reasonable 1% from January 2025," he added. "Coming out of the holiday break, inventories were up 7% over December 2025, and also up 9% from January 2025 continuing a trend from recent months (had been up 4% over prior year the last three months)."

On a seasonally adjusted basis, sales at furniture and home furnishings stores in February were down 1% compared to January 2026, and down 5.6% from February 2025. Year to date on a non-adjusted basis, sales were down 4.8%, according to March's Furniture Insights.

In his comments Laferriere noted, "the impact of geopolitical events continues to develop, with increases in transportation and foam costs (and decreases in availability) the most immediate and obvious concerns. While somewhat a new twist on an old problem, this feels different due to its global reach.

"The tariff situation also continues to evolve, as following last month’s Supreme Court elimination of the IEEPA tariffs, the Administration appears to be setting the groundwork for a more permanent and legally defensible system. However, the resulting uncertainty will continue for the foreseeable future proving both challenges and opportunities.

"So, it seems 2026 could be shaping up to be another bumpy ride."