by Consumers who plan to spend less on furniture may need a reminder on how it can enhance their daily lives
WASHINGTON — The latest Consumer Confidence report for January released earlier this week offers a glimpse of consumer views toward furniture spending — and the news is not encouraging.
First the big picture. According to the survey, the Consumer Confidence Index fell 9.7 points to 84.5 from an upwardly revised 94.2 in December, while the Present Situation Index that reflects consumers’ assessment of current business and labor market conditions fell 9.9 points to 113.7. The Expectations Index reflecting consumers’ short-term outlook for income, business and labor market conditions fell by 9.5 points to 65.1.
The Conference Board said all three indexes were at their lowest level since 82.2 in May 2014, falling even below the negative territory during Covid.
Confidence declined for all age groups in January while “consumers under 35 continued to be more confident than consumers age 35 and older. Gen Z also was the most optimistic of all generations surveyed, the report noted. And confidence also declined for all income brackets, with those earning less than $15,000 the least optimistic.
In addition, consumer confidence declined in January among all political affiliations, “with the sharpest decline among Independents.”
The survey noted that references to prices and inflation, oil and gas prices, plus food and grocery prices were elevated, with mentions of tariffs and trade, politics and the labor market also rising in January. And, as anticipated, references to the cost of health/insurance also were higher.
There were also references to furniture, and the news was not good. That’s largely because consumers seemed more cautious about plans to spend on big-ticket items over the next six months particularly in light of an anticipated decline in plans to buy a home.
“Plans to purchase refrigerators, dishwashers, furniture and TVs decreased,” the report said, adding that “plans to buy electronics dipped in all categories besides smartphones, which continued to trend upward on a six-month moving-average basis. Used cars, furniture, TVs and smartphones remained the most popular within their categories for future purchases.”
However, consumers do plan to spend more on certain things and that includes visits to restaurants and bars, hotels and motels for personal travel, pet care and motor vehicle services.
While plans for health-care spending were relatively high, such spending plans also declined, as did plans to spend on streaming internet and mobile services, beauty and personal care, utilities and entertainment, such as movies, sports events and concerts, for example.
True, furniture has long been viewed as a postponable purchase. But for those wanting everyday gratification in how it enhances the environment they come home to every day, it could certainly trump the immediate and short-term gratification offered by a restaurant, bar or travel experience. It’s also something that can be enjoyed — even envied — by guests and other visiting family members while also being passed on to future generations as family heirlooms.
Thus, the industry has an opportunity to communicate the value proposition that furniture represents in consumers’ lives as a long-term investment that enhances their quality of life and investment in their home. While consumers may not have plans to spend on furniture, marketing will become as important, if not more so, than ever, including messages that present visuals of homes with beautiful new bedroom, living and dining furniture that creates a sense of want and need.
So for those who view marketing as an important part of the sales process, the opportunities abound, particularly for those consumers looking for a reason to spend on their homes in the year ahead and beyond.
