Furniture factory orders drop 11% in March
Shipments down 9% for month
By Furniture Today Staff -- Furniture Today, June 3, 2008
HIGH POINT — Furniture factory orders in March were down 11% from the same month last year, leaving orders for the first quarter down 8%, according to Smith Leonard.
Shipments were down 9% from March 2007 as factories worked off some of their order backlog, and were down 7% for the quarter, the accounting and consulting firm reported.
Smith Leonard said that 83% of respondents to its monthly factory survey reported their orders were down from the same month a year earlier, and the same percentage reported shipment declines. Ken Smith, the firm’s managing partner, said in his monthly Furniture Insights newsletter that with a few exceptions, those reporting gains were up only slightly.
“We hope that April market orders help to improve results over the next few months, but we are not hearing very many reports of good business out there,” Smith said.
He added that it was obvious that price inflation in many staples, such as gas and food, was hurting home furnishings at retail. “Consumers’ disposable income is being chewed up,” he said.
“We all believe that times will get better, but you have to do what you have to do to survive until those times do get here,” Smith said. “The good news is that we are still selling furniture — just maybe not enough of it.”
| U.S. furniture factory orders, shipments in March | |||
| In billions of dollars | Change from | ||
| Feb. 2008 | Mar. 2007 | ||
| New orders | 2.052 | 2% | -11% |
| Shipments | 2.148 | 5% | -9% |
| Order backlog | 1.568 | -2% | -10% |
| Jan.-Mar. | Change from 2007 | ||
| New orders | 5.993 | -8% | |
| Shipments | 5.940 | -7% | |
| Source: Smith Leonard |
