New orders for furniture were 5% lower in July 2016 than July 2015, when orders were 4% higher than July 2014. The decline in July brought the year-to-date results to basically flat with the first seven months of 2015.

That’s according to the latest Furniture Insights survey of residential furniture manufacturers and distributors from High Point accounting and consulting firm Smith Leonard.

Some 80% of the participants reported declines in orders in July with approximately 61% reporting declines year-to-date.

Shipments in July fell 9% from July 2015 with 80% of the participants reporting declines. The decline from June 2016 shipments were due primarily to the vacation week taken in July by most companies.

Year-to-date, shipments were down 1% from 2015. Some 61% of participants reported declines in shipments.

Backlogs were down 2% from July 2015 and flat with June. Backlogs in July 2015 were up 9% over July 2014.

Receivables were down 8%, in line with the decline in shipments. Inventories were up 2% from June and were 2% higher than July 2015.

“While a bit high, it was probably difficult to react too quickly to the poor July results,” noted Ken Smith, a partner at Smith Leonard.

Factory and warehouse payrolls reflected the lower shipment levels and the number of employees, up 1%, was reasonable and consistent with recent results.

“We noted last month that on an overall basis, the national items that we look at for the furniture industry seem to be good enough for the furniture business to be better than it is,” Smith said in summary. “We continue to hear that business is okay but clearly not ‘good’ for most.

“With consumer confidence up in August, we have not seen strong results as of yet of the improved confidence. Most people we talk to seem to think the presidential election is keeping people concerned. Some say it’s not the rhetoric and negativity but concern over whomever wins.”

(Source: furnituretoday.com)