U.S. furniture demand continued to show resilience in June 2026, with new orders rising 11% year over year despite a challenging economic backdrop, according to the latest Furniture Insights report from Smith Leonard.

New furniture orders declined 5% from May, following a 13% increase in May compared with April. Despite the monthly decline, orders were 4% higher year to date through June compared with the same period in 2025, marking the third consecutive month of year-over-year growth.

Shipments also edged higher, increasing 2% from May and 3% compared with June 2025. On a year-to-date basis, however, shipments remained level with 2025. Backlogs provided another positive signal, rising 2% month over month and 11% year over year.

The wider consumer environment remains mixed. The Conference Board Consumer Confidence Index fell 0.8 points in August to 89.4, with consumers becoming more cautious about business conditions, the labour market and household income prospects over the next six months. Nevertheless, furniture remained among the most desired durable-goods purchases consumers planned to make within six months.

Housing activity continues to present a more complicated picture. Existing-home sales fell 1.7% month over month in July but increased 0.7% year over year to an annualised rate of 4.09 million units. The median price for an existing single-family home reached $440,300, up 1.9% from July 2025.

New-home sales, meanwhile, declined more sharply. Sales of new single-family homes fell 10.5% from June to a seasonally adjusted annual rate of 607,000 in July, while remaining 6.3% below July 2025 levels.

Mortgage rates also remain an important factor for the furniture market, with the average 30-year fixed mortgage rate reaching 6.54% in July, compared with 6.49% in June and 6.72% a year earlier. According to NAR Chief Economist Lawrence Yun, the housing market could see significantly stronger activity if mortgage rates return closer to 6%.

The broader U.S. economy also slowed during the second quarter. Real GDP increased at an annualised rate of 1.5%, down from 2.1% growth in the first quarter. The slowdown reflected weaker government spending, investment and exports, although consumer spending accelerated.

Despite these headwinds, Smith Leonard notes that furniture demand has remained surprisingly resilient. The combination of rising year-over-year orders and stronger backlogs could provide momentum for the sector through the second half of the reporting year.

The industry continues to face pressure from energy and transportation costs, as well as ongoing uncertainty surrounding tariffs. However, recent employment data offers some cause for optimism as furniture manufacturers and retailers enter the second half of the year.

The latest figures suggest that while consumers and the housing market remain sensitive to economic conditions, furniture demand is showing signs of underlying strength, with sustained order growth providing a more positive signal for the industry heading into the autumn market season. Smith Leonard's August 2026 Furniture Insights

Source:  smith-leonard.com