April factory orders inch up 2%
By Furniture Today Staff -- Furniture Today, July 19, 2004
High Point — U.S. residential furniture factory orders were up 2% in April from the same month a year ago, but results varied widely among companies surveyed, according to BDO Seidman.
The accounting and consulting firm also noted that, uncharacteristically, April orders and shipments were down from March, missing the usual surge associated with the High Point market. April orders dropped off 12% from March, and shipments were down 13%.
Although orders rose slightly in April, "the results among individual (survey) participants were about as widespread as we have seen in some time," BDO said. Some reported percentage gains in the high double digits, while others reported declines just as sharp.
Just over half of manufacturers reported gains in April 2004 compared with April 2003, contrasting with the 82% reporting year-to-year gains in March and 66% in February.
Shipments in April were up 9% from a year earlier, BDO estimated, as factories worked off backlogs.
For the year to date, business still is outpacing 2003, with orders up 12% and shipments up 8%. Last year got off to a weak start, however, with shipments through April down 5% from 2002, so this year's performance is only modestly better than 2002.
Ken Smith, national director of BDO's Furniture Industry Services, said his conversations with retailers indicated their business generally was sluggish in May and June, except for Memorial Day. Some lifestyle stores and specialty products retailers, however, were "doing well to OK."
Several key economic indicators remain favorable for the industry, he said, with consumer confidence and home sales remaining relatively strong.
| Factory orders, shipments in April | |||
|---|---|---|---|
| In billions of dollars | |||
| Change from | |||
| March '04 | April '03 | ||
| Source: BDO Seidman | |||
| Orders | $2.051 | -12% | 2% |
| Shipments | 2.223 | -13% | 9% |
| Order backlog | 2.414 | -3% | 6% |
| January–April | Change from 2003 | ||
| Orders | $8.497 | 12% | |
| Shipments | 8.602 | 8% | |
