Friday, August 8, 2025
In May 2025, new residential furniture orders slipped by a modest 1 % compared to May 2024 but rebounded sharply from April, rising 11 %. Roughly half of survey participants reported increases versus decreases year-over-year, according to Mark Laferriere, assurance partner at Smith Leonard, publisher of the monthly Furniture Insights report. Year-to-date figures show new orders remain 3 % lower than a year ago.
Seasonally adjusted, June sales at furniture and home furnishings outlets were up 4.5% from June 2024 but unchanged from May. According to the July Furniture Insights, sales were up 5.7% year-to-date on a non-adjusted basis. Shipments in May were down 2 % compared to May 2024, remained flat versus April, and are now down 1 % for the year-to-date. Despite the dip, 40 % of survey respondents still reported shipment gains over the previous year.
Compared to last year, new orders for household furniture have decreased by 3% so far this year. Although 40% of survey respondents indicated growth over the previous year, May shipments were down 2% from 2024 estimates, according to Laferriere. Shipments in May are down 1% so far this year compared to 2024 estimates and flat compared to April. Backlogs have eased 10 % from May 2024 but ticked up 2–3 % from April 2025. Laferriere noted these patterns align closely with the trajectory of orders and shipments.
Similar to new furniture orders, May backlogs are higher than they were the month before but lower than they were a year ago. The backlogs are up 3% from April 2025 but down 10% from May 2024, “which appear materially in line with new order and shipments trends,” he told reporters. Receivables levels decreased 2% from May 2024 and 6% from April, “both materially in line with related shipment trends, subject to normal fluctuations in the timing of collections,” Laferriere added.
Receivables fell 6 % from April and are down 2 % year-over-year—showing a steady, expected movement in line with shipment trends, aside from normal collection timing fluctuations. Looking at retail performance, seasonally adjusted sales at furniture and home furnishings stores were unchanged from May to June but have climbed 4.5 % compared to June 2024. On a non-adjusted basis, year-to-date sales rose 5.7 %.
“This month we saw consumer confidence at least begin to stabilize, and some positive trends with GDP, but housing continues to bump along while the Fed again takes a wait-and-see approach on inflation and rate cuts during its July meeting,” Laferriere said. “Dealing with the ever-evolving tariff landscape continues to be top of mind for suppliers and retailers alike, but that picture is seemingly coming more and more into focus with the latest round of tariff announcements, though China remains the wild card,” he added. “After about six months of uncertainty, we are hopeful this will provide consumers with a return to some sense of normalcy and the direction the industry needs to effectively operate and capitalize on the many positive factors and opportunities that remain in the market for the remainder of the year and beyond.”
Key takeaways & outlook
Modest decline vs. strong month-to-month rebound: While new orders are still below last year’s level, the sharp 11 % jump from April points to resumed demand.
Steady shipments and receivables: Flat month-on-month shipments and lower receivables suggest tight operational alignment with incoming orders.
Backlogs easing, with slight recovery: The small backlog uptick may help cushion near-term production.
Retail sales remain healthy: Despite industry softening, consumer purchases show resilience through mid-2025.
Strategic context: Laferriere mentioned improving consumer confidence, cautious signals on housing, shifting tariff clarity, and hope for stable operating conditions ahead.
For more updates, visit the European woodworking industry website: woodandpanel.com
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