by Smith Leonard Furniture Insights report says new orders in October ended 5 months of yearly declines between May and September
HIGH POINT — Year-over-year new orders for residential furniture were flat in October, ending five months of yearly declines between May and September, according to the December Furniture Insights report from Smith Leonard.
Meanwhile, shipments were down 5% in October compared with October 2023 but up 4% from September.
New orders for residential furniture totaled $2.32 billion in October, compared with $2.35 billion in October 2023. About half of survey participants reported increases while the other half reported decreases in orders. New orders also were flat compared with the $2.32 billion reported in September.
October shipments totaled $2.2 billion, compared with $2.3 billion in October 2023, down for about 75% of survey participants. They were up from $2.17 billion reported in September.
The report also noted that October 2024 backlogs totaled $2.4 billion, down 8% from $2.7 billion in October 2023 and down 2% from $2.45 billion in September “as current shipments outpaced new orders during the last month.”
Other highlights of the report were as follows:
+ Receivable levels were down 7% from October 2023 but up 6% from September, which the report said were both “materially in line with respective shipment trends.”
+ Inventories were down 8% from October 2023 and up 1% from September 2024, which the report said “are in line with prior periods and current operational levels.”
+ The number of factory and warehouse employees was down 5% from October a year ago, but even with September 2024, while payroll expenses were down 2% in October 2024 compared to September 2024.
+ Year to date through October 2024, the report noted that payroll expenses were down 3%, which it noted “is materially consistent with the employee headcount and prior periods.”
The report noted that companies have aligned both employment and inventory levels to match current operations.
