August orders off 4%, BDO says
By Furniture Today Staff -- Furniture Today, October 28, 2001
HIGH POINT — New orders in August were down 4% from a year earlier at U.S. residential furniture factories, and shipments were off 11%, according to BDO Seidman.
It was the 12th straight month of declines in monthly orders compared with the previous year, the accounting and consulting firm said.
"Unfortunately, we will likely see another decrease in September for most companies," said Ken Smith, director of BDO's furniture industry practice, in the firm's Monthly Insights newsletter.
But he said the industry has not yet fully seen the effects of the terrorist attacks and purely economic factors such as the tax rebates, future tax cuts and declining consumer confidence.
"Some we have talked to have seen little impact since Sept. 11. Most, on the other hand, saw a definite drop in orders in the following two weeks," Smith said. "Business seemed to be getting better lately, but the retaliation that began Oct. 7 may have more negative impact."
Economic indicators such as new and existing home sales, interest rates and retail sales still look favorable for furniture, but most signs are negative, including consumer confidence and the unemployment level.
For the first eight months of the year, orders were off 8% and shipments were down 7% from the 2000 pace, according to BDO. The firm previously had estimated that shipments would be off 4% to 5% for the year, with business picking up in the fourth quarter.
"Due to the Sept. 11 tragedy, we doubt that will happen," Smith said, "but we will wait until things settle down somewhat before updating those projections."
| In billions of dollars | Change from July '01 | Change from August '00 | |
|---|---|---|---|
| Orders | $2.149 | 16% | -4% |
| Shipments | 2.059 | 20% | -11% |
| Order backlog | 2.219 | 3% | -15% |
| January - August | Change from 2000 | ||
| Orders | $16.642 | -8% | |
| Shipments | 16.650 | -7% | |
| Source: BDO Seidman | |||
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June factory orders down 16% from '08
Sep 7, 2009 -
Factory orders, shipments up 3% in March
Jun 18, 2006
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