Executive Summary
The results of our recent survey of residential furniture manufacturers and distributors were a bit surprising. After new orders in July were 5 percent lower than July 2015 orders, August 2016 orders increased 6 percent over August 2015 orders. We think that maybe there was a timing issue between the two months.
The year-to-date results seem to tell more of the story for the year. Year-to-date, new orders were up 1 percent over the first eight months of 2015. Only 44 percent of the participants reported increased orders over last year. In 2015, new orders were up 5 percent over the first eight months of 2014.
Shipments in August were up 6 percent over August 2015, following a 9 percent decrease reported in July. This increase brought shipments year-to-date back to about even with the same period a year ago. Only 42 percent of the participants reported increased shipments year-to-date.
Backlogs fell 2 percent from July and were also 2 percent lower than August 2015. August 2015 backlogs were 5 percent higher than August 2014 levels.
Receivable levels continue to be in good shape, down 4 percent from a year ago. Considering shipments year-to-date are flat, the decrease in receivables indicates they are in good shape. Inventories also appear to be at good levels, down 1 percent from last year and down 1 percent from July.
Factory and warehouse payrolls are up 1 percent over last year-to-date. The number of factory and warehouse employees was also up 1 percent over last year. Each of these comparisons seem very much in line with current business conditions.
