by However, orders and shipments rose from July driven partly by the July 4th holiday
HIGH POINT — Both orders and shipments of residential furniture were down for the month of August compared to the same month last year, according to the latest Furniture Insights report from Smith Leonard.
However, orders and shipments were both up from July, signaling a boost that also coincided with a month-over-month and-year-over year decrease in backlogs.
The report said that new orders totaled $2.2 billion in August, down 7% from the $2.4 billion reported in August 2023 and also following a 5% year-over-year decline the previous month. The firm said that 40% of the survey participants reported an increase in orders in August compared to the prior year.
They also were up 12% from the estimated $1.9 billion in orders reported in July, while year-to-date orders increased 1% to $17.1 billion.
Shipments totaled $2.37 billion for the month of August, down 10% from $2.6 billion in August 2023. They were down for 83% of the survey participants.
They were up 14% from the $2.05 billion reported in July but down 8% for the first eight months, to $17.8 billion, from $19.1 billion for the same period in 2023.
Backlogs totaled $2.4 billion in August, down 10% from $2.7 billion reported in August 2023. They were also down 5% from $2.6 billion in July “as current shipments outpaced new orders.”
Other highlights of the report were as follows:
+ Receivable levels were down 5% from August 2023 but up 6% from July, “both of which were in line with the respective shipment trends,” the report noted.
+ Inventory levels were down 11% from August 2023 and consistent with July, which the report said “is in line with prior periods and current operational levels.”
+ The number of factory workers was down 5% from August 2023 and down 1% from July.
+ Payroll expenses were up 10% in August compared with July, which the report said is consistent with shipments and the impact of the July Fourth holiday. It also noted that year to date through August, payroll expenses are down 2%, which it noted is “materially consistent with the employee headcount and prior periods.”
