HIGH POINT, N.C. - New orders for residential furniture rose 6% in December compared to 2023 figures, marking eight straight months orders have grown over the prior year, according to the latest issue of Furniture Insights. Roughly two-thirds of the participants reported increased orders in December 2023 compared to a year ago. 

For calendar 2023, new orders were up 5% over 2022, though 2022 year-to-date orders were down 31% from 2021. said Mark Laferriere. assurance partner at Smith Leonard, which produces the monthly report.  

Shipments in December 2023 were down 4% from November 2023 and down 14% from December 2022, which were up 3% from December 2021, according to Smith Leonard, with approximately two-thirds of the participants reporting a decline. For calendar 2023, shipments were down 17% from 2022. 

"So despite recent improvements in new orders, trends continue to be affected by many companies shipping from their historically high backlogs through much of 2022. And with month-over-month orders declining, December 2023 backlogs were down 5% from November 2023 and down 33% compared to December 2022," Laferriere added. 

Receivable levels were down 12% from November, which Laferriere said "reversing the apparent 5% timing difference increase from the prior month." Receivable levels dropped 16% compared to the year prior, "which is materially in line with the year-to-date decline in shipments."

Inventories were down slightly, 1%, from November 2023 and were down 28% from December 2022, an indicator that most companies rebalanced their inventory levels to match current operations. 

On a seasonally adjusted basis, sales at furniture and home furnishings stores in January were up 1.4% from December 2023 but down 9.8% from January 2023 figures.

"Economic indicators, as well as our monthly stats, continue to provide mixed results and accordingly, expectations for 2024.," Laferriere commented. "Overall consumer confidence took a step back in February 2024, which seems at odds with positive economic data such as steady employment, diminishing inflation, and a strong stock market.

"Housing is also showing some signs of life despite the current interest rate environment, and though expected to come slowly and methodically, there appears to be help on the way in the form of mid-year interest rate cuts from the Fed that should drive additional housing and furniture sales activity."

He added, "Consistent with many economic reports, the Conference Board is no longer forecasting a general recession for 2024, though we know the furniture industry tends to move at its own pace. People we’ve spoken to recently within the industry are largely cautiously optimistic about 2024 and that recent trends and positive outlooks for the coming year will outweigh the negative factors associated with the election and international concerns that seem to dominate the news cycle."