HIGH POINT – Residential furniture orders climbed 2% in March over the same time last year, according to accounting firm Smith Leonard in its latest report.

Orders have now risen in nine of the last 10 months. New orders were flat when compared with February. Around half of survey participants reported increased orders, compared with two-thirds reporting an increase last month. Year-to-date, orders are up 5%.

Shipments for the month were down 17% from 2023 and also down 4% from February. They were down for 85% of participants. Year-to-date, shipments are down 12%.

Receivables were down 9% from last March and down 3% from last month, which Smith Leonard says is materially in line with previous periods. Inventories were down 22% from last March and down 2% from February.

“With the first quarter of 2024 in the books for purposes of our monthly stats, and approaching the mid-year mark on the calendar, available data continues to provide conflicting and somewhat perplexing indications for what the remainder of 2024 will hold,” said Mark Laferriere, Smith Leonard assurance partner.

“Consumers continue to be anxious about future prospects despite certain positive economic trends (e.g. employment), and this seems to be negatively impacting discretionary spending on items such as home furnishings.

“In addition, it now seems unlikely that the Fed will make any meaningful rate cuts in the next six months that would potentially drive additional housing activity and furniture purchases, with inflation still a focus and the elections looming large.

“At this stage, it would seem the remainder of 2024 will continue to be challenging at the macro level, though nothing that the industry hasn’t managed through many times before. Individual operators will continue to look for opportunities amongst the challenges to be well-positioned for when things inevitably swing in the other direction.”

Source: https://www.furnituretoday.com/