The furniture manufacturing industry experienced strong sales and orders in October and was ranked as the third highest growth sector in the rankings compiled by the Institute for Supply Managements (ISM) in its latest report on manufacturing activity.
Regarding furniture and related products, The Manufacturing ISM Report on Business report said, "Business remains strong, with brisk incoming orders. We have become much more supply driven versus demand driven, due to shortages of labor, materials and freight. Costs continue to increase on all fronts, and we are considering our third price increase of the year for our customers."
Economic activity in the manufacturing sector grew in October, with the overall economy achieving a 17th consecutive month of growth, according to the nation's supply executives participating in the August 2021 Manufacturing ISM Report on Business.
According to the report, manufacturing grew in October, as the Manufacturing PMI registered 60.8 percent, 0.3 percentage point lower than the September reading of 61.1 percent, which indicates strong sector expansion in October.
ISM’s New Orders Index registered 59.8 percent in October, a decrease of 6.9 percentage points compared to the 66.7 percent reported in September. This indicates that new orders grew for the 17th consecutive month.
The Production Index registered 59.3 percent in October, 0.1 percentage point lower than the September reading of 59.4 percent, indicating growth for the 17th consecutive month.
ISM’s Employment Index registered 52 percent in October, 1.8 percentage points above the September reading of 50.2 percent. The Employment Index reported a second month of expansion.
The delivery performance of suppliers to manufacturing organizations was slower in October, as the Supplier Deliveries Index registered 75.6 percent, 2.2 percentage points higher than the 73.4 percent reported in September.
The Inventories Index registered 57 percent in October, 1.4 percentage points higher than the 55.6 percent reported for September. Manufacturing inventories continued to expand due to companies stocking more raw materials in hopes of avoiding production shortages, as well as growth in work-in-process and finished-goods inventories.
ISM’s Backlog of Orders Index registered 63.6 percent in October, a 1.2-percentage point decrease compared to the 64.8 percent reported in September, indicating order backlogs expanded for the 16th straight month.
The 16 manufacturing industries reporting growth in October — in the following order — are: Apparel, Leather & Allied Products; Furniture & Related Products; Textile Mills; Electrical Equipment, Appliances & Components; Machinery; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Computer & Electronic Products; Chemical Products; Fabricated Metal Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Plastics & Rubber Products; Paper Products; Primary Metals; and Transportation Equipment. The two industries reporting a decrease in October compared to September are Wood Products: and Nonmetallic Mineral Products.
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