HIGH POINT, N.C. - New orders for residential furniture rose 7% in February compared to 2023 figures, resuming the streak which saw eight out of the last nine months recording year-over-year growth, according to the latest issue of Furniture Insights. Approximately two-thirds of the participants reported increased orders in February compared to a year ago.

New orders were also up 5% over January, said Mark Laferriere. assurance partner at Smith Leonard, which produces the monthly report.  

Shipments in February were up 8% over January, but down 5% from February 2023 figures, according to the analyst, with approximately two-thirds of the participants reporting a decline. February 2024 backlogs were down 24% compared to February 2023, but flat compared to January 2024.

Receivable levels were up 1% compared to January, but down 7% from February 2023, "which is materially in line with the decline in shipments for same period." Inventories were also up 1% from January, but down 24% from February 2023 - notably the same as the backlog decline, Laferriere noted, "again indicating that most companies have rebalanced their inventories levels to match current operations."

On a seasonally adjusted basis, sales at furniture and home furnishings stores were down 0.3% in March 2024 from February 2024 on a seasonally-adjusted basis, and down 6.1% from March 2023.

The continued lack of traffic in retail stores was a concern Lafierre said was repeatedly voiced at the High Point Furniture Market in April. 

"Nationally, consumer confidence remains shaky, with consumers relatively positive about their present situations, but growing more anxious about prospects for future business conditions and jobs, among other things. With waning consumer sentiment combined with stagnant GDP and housing, inflation refusing to budge, continued political and international concerns, and rate cuts slow to materialize from the Fed (as announced this week) things will presumably continue to be challenging for the industry for the duration of 2024. Perhaps some of those who have been on the sidelines of the housing market will drive some further activity despite the interest rate environment," he commented.

Lafierre continued, "However, there are a few bright spots including national employment remaining steady. And while furniture orders certainly are not where we want them to be, they do remain above comparable periods of 2023, which along with manageable supply chains and inflation at least provides companies some continuity with which to manage their businesses, control what they can control, and pursue opportunities as they present themselves."