HIGH POINT, N.C. - New orders for residential furniture rose 22% in April compared to 2023 figures, continuing the streak of 10 out of 11 months with year-over-year growth, according to the latest issue of Furniture Insights. Approximately 75% of the participants reported increased orders in April compared to a year ago.

Year to date through April saw new order rise 8% compared to 2023 figures, said Mark Laferriere. assurance partner at Smith Leonard, which produces the monthly report.  New orders were flat however, compared to March.

"Shipments appear to have begun normalizing compared to last year, with April 2024 up 2% from April 2023, but down 1% from March 2024," according to the analyst; shipments were up for approximately half the participants in the year-over-year comparison. However, for the year to date through April, shipments are down 9% compared to 2023 figures. April backlogs were down 12% compared to 2023, but up 2% from March 2024.

"Receivable levels were consistent with March 2024, but down 3% from April 2023, which is materially in line with shipments for the same periods," Laferriere noted. "Inventories and employee levels are again materially in line with recent months, but down from 2023, indicating that companies have aligned levels to match current operations."

On a seasonally adjusted basis, sales at furniture and home furnishings stores were down 0.1% in May from the previous month, and down 6.8% from May 2023.

"Overall, there were minimal changes in the economic indicators we track during April/May 2024 compared to recent months.," he said. "However, our monthly stats and national data shows the furniture industry continuing to hold its own in the face of headwinds from consumer confidence, housing, interest rates, and inflation."

Laferriere added, "Meanwhile, ocean container rates are again on the rise with TD Cowen reporting a 94% increase in spot rates between March 28 and June 27, though this is expected to ease in the second half of the year. This has led some within the industry to reestablish surcharges on internationally sourced goods.

"On a more positive note, in their June 2024 meeting, the Fed indicated the possibility for one 0.25% cut by the end of the year, with the potential for up to four additional 0.25% cuts in 2025 if inflation continues to ease."

He continued, "Hopefully, the increased new orders we’ve seen in our monthly stats for the first four months of 2024 will drive strong shipments through the remainder of the summer into the fall, when help could be on the way in the form of initial interest rate cuts, increased housing activity, lower container rates, and improvements in consumer confidence as life returns to 'normal' post-election cycle."