HIGH POINT — New orders for residential furniture fell 3% in May from May 2023 while shipments fell 4% during the same period, according to the latest Furniture Insights report from Smith Leonard.

New orders totaled $2.22 billion, down from $2.3 billion in May 2023, and level with the $2.21 billion reported in April. The report said that about half of survey participants reported an increase compared to a year ago. The flat nature of the month-over-month results was the third consecutive month of no overall change, the report noted.

Year to date, new orders totaled $10.9 billion, up 6% from $10.4 billion the same period last year.

May shipments totaled $2.2 billion, down 4% from $2.3 billion in May 2024 and flat with $2.2 billion in May. The year-over-year shipments were down for 75% of survey participants.

Meanwhile, year-to-date shipments through May totaled $11.1 billion, down 8% compared to $12.4 billion in 2023. The report added that “presumably that trend will begin to turn around in the coming months with the increased order volumes.”

Other highlights of the report were as follows:

+ May 2024 backlogs totaled $2.7 billion, down 6% compared to $2.9 billion in May 2023, and level with backlogs in April.

+ Receivables were down 6% from May 2023 and down 7% from April, with the year-over-year change “being materially in line with shipments for the same period.”

+ Inventories were down 2% from April and down 17% from May 2023, which the report said is in line with prior periods and current operational levels.

+ The number of factory and warehouse personnel was down 4% from May 2024 and up 1% from April. It also noted that year to date through May 2024, payroll expenses were down 4% compared to the same period last year, “which is consistent with the employee headcount and prior periods.”

“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,” the report said.

SOURCE: homenewsnow.com