HIGH POINT, N.C. — New residential furniture orders dropped 9% in September compared to 2023 figures, continuing the trend of year-over-year declines in growth, according to the November issue of Furniture Insights.  Approximately 63% of the survey participants reported decreased orders in September compared to a year ago. 

However, on a positive note, new orders were up 5% compared to August figures, and are even for the year-to-date, noted Mark Laferriere, assurance partner at Smith Leonard, which produces the monthly report.

September shipments were down 7% compared to 2023 figures, and also down 7% from August 2024. Compared to September 2023 figures, shipments were down for approximately 67% of the survey participants. Year to date through September 2024, shipments are again down 8% compared to the same period of 2023. Backlogs were down 10% compared to September 2023, but up 1% from August 2024 "as new orders outpaced current shipments."

"Receivable levels were down 1% from August 2024, and down 8% from September 2023, both of which are materially in line with the respective shipment trends," Laferriere noted. "Inventories and employee/payroll levels are again materially in line with recent months, but down from 2023, indicating that companies have aligned levels to match current operations."

On a seasonally adjusted basis, sales at furniture and home furnishings stores down down 1.3% in October from the previous month, but up 1.5% from October 2023. Sales were down 3.9% for year to date October 2024 compared to the same period for 2023 on an unadjusted basis, the analyst reported.

"This month, we saw a few of the national economic indicators trending in the right direction, particularly Consumer Confidence and existing-home sales, though new residential housing activity continues to lag behind," Laferriere said. "These gains will need to be sustained to meaningfully filter down to the furniture industry, as we continue to see a decline in current orders and shipments for participants in our survey compared to a year ago. However, a review of recent public company results does provide some hope in that the year over year declines have narrowed in their last quarterly filings on
average."

Inflation and the possible tariffs are of key concern. "While we have seen most of our clients significantly reduce their reliance on China produced goods over the last 10 to 15 years, there is still little doubt that tariffs will be disruptive to the overall industry, providing both challenges and opportunities," he noted.

"I suppose no one can say we don’t live in interesting times."