New retailer orders for furniture rose a robust 14% in September compared with the same month a year ago, according to the latest Furniture Insights survey.

High Point accounting and consulting firm Smith Leonard conducts the monthly survey of residential furniture manufacturers and distributors.

September orders were 19% ahead of August levels. With the healthy increases in September, new orders are now up 2% for through 2016’s first three quarters.

“In reviewing the survey results, we had numerous participants reporting healthy double-digit increases for the month,” said Smith Leonard Partner Ken Smith. “New orders were up for some 53% of the participants, up from only 44% last month, with some of the larger increases reported by some of the larger companies while some of the reported decreases were relatively small.”

September shipments rose 7% above September 2015 levels after a 6% increase in August. Shipments rose for about 53% of the participants. Year to date, shipments were up 1% over 2015’s first nine months, up from basically flat in August.

Backlogs rose 10% higher in September from August levels as orders exceeded shipments. Backlogs were 3% higher than September 2015, up from a drop of 2% reported last month.

“Backlogs have been lower than the previous year since January and really into last year,” Smith noted.

September receivables levels rose just 1% compared with September 2015.

“With year-to-date shipments up 1%, that increase in receivables is in line in spite of the 7% increase from last September,” Smith said. “Receivables were up 3% in August over August 2015.”

Inventory levels fell 1% again in September from August 2016. Compared with September 2015, inventories were 2% lower in September 2016, after a 1% decrease reported last month.

Factory and warehouse employment fell 1% from August. Compared with September 2015, the number was about the same. In August, employment was 1% ahead of the same month last year. Factory and warehouse payrolls rose 2% from September 2015 and were up 1% year-to-date.

“This was about the same as we reported last month and seems very much in line with the current volume levels,” Smith said.

In summary, Smith expressed some surprise at the survey’s September results.

“In September, we had heard that business had picked up a bit, but the surprise to us was how much,” he said.

(Source: Furniture Today  Author: Powell Slaughter)