Smith Leonard Furniture Insights report also notes that year-over-year June shipments also were down 8%
HIGH POINT — New orders and shipments for residential furniture were both down in June compared to June 2023, according to the latest Furniture Insights Report by Smith Leonard.
New orders totaled $2.1 billion in June, down 6% from $2.24 billion in June 2023, according to the report, with two-thirds of respondents reporting a decline. New orders also were down 8% compared with the $2.2 billion reported in May, although orders for the first six months were up 3%, to $13 billion, from $12.9 billion the same period last year.
Meanwhile June shipments of residential furniture totaled $2.21 billion, down 8% from $2.4 billion in June 2023, reflecting decreases reported by 80% of survey participants. They were also about level with $2.23 billion in May.
For the full six months, shipments totaled $13.3 billion, down 9% from $14.9 billion the first six months of 2023.
Also, backlogs totaled $2.6 billion in June, down 6% from $2.8 billion in June 2023 and down 2% from $2.7 billion in May.
Other highlights of the report are as follows:
+ Receivable levels were down 7% from June 2023 and down 1% from May. The report noted that both were materially in line with shipments for the same periods.
+ Inventories were down 16% from June 2023 and consistent with May, which the report said “is in line with prior periods and current operational levels.”
+ The number of factory and warehouse employees was down 6% from June 2023, which the report noted is in line with prior periods and current operational levels.
+ Year to date, through June, payroll expenses are down 7%, which the report also noted is consistent with employee headcount and prior periods.
“Inventories and employee levels are again materially in line with recent months, but down from 2023, indicating that companies have aligned levels to match current operations,” the report said.