Furniture Business News

Furniture orders head down again

August 10th, 2007

After breaking a 13-month streak in April, furniture orders resumed their downward ways in May, declining 13 percent from May 2006.

Smith Leonard Accountants & Consultants in High Point, which publishes a monthly furniture industry report, had attributed April’s 12 percent increase to orders from the High Point Market, held in April 2006 but in March 2007. Combining April and May 2007, orders fell 2 percent from the same two-month period last year.

Furniture shipments were 2 percent higher in May than April but 7 percent lower than in May 2006, Smith Leonard reported. Backlogs declined 6 percent from April and 5 percent from May 2006. Inventories shrank 1 percent from April and 11 percent from May 2006. Receivables dropped 1 percent from April and 5 percent from May 2006.

Factory employment was even with April and down 14 percent from May 2006, when payrolls were down 6 percent. Retail home furnishings sales fell 3 percent from May 2006 and 2 percent from June 2006. But year-to-date, sales have increased 3 percent over the first half of 2006.

“Consumer debt growth is a continuing concern, but the recent report on consumer confidence is encouraging,” Smith Leonard said. “… With interest and inflation (except for energy-related items) in reasonably good shape, we just need some pickup in housing and sustained confidence.”

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