EXECUTIVE SUMMARY

New orders were up 6% compared to the prior month of June 2025 (following the 9% decrease from May 2025). New orders were also up 13% in July 2025 compared to July 2024. Accordingly, year to date through July 2025, new orders are now down only 1% compared to 2024 (down 2% last month). 

Shipments were down 2% compared to the prior month of June 2025. However, shipments were up 3% in July 2025 compared to July 2024. Year to date through July 2025, shipments remain down 1% compared to 2024 (same as last month).

July 2025 backlogs were down 4% compared to July 2024, but up 2% from June 2025.

Receivable levels were up 2% from June 2025, and flat with July 2024.

Inventories and employee/payroll levels are again materially in line with recent months and the prior year. However, the gradual decline in employees over the last 6 months, continues to imply companies are allowing some normal attrition to occur without rushing to find replacements.

Housing

Existing-home sales remained essentially the same in August, ticking down by 0.2% from July, according to the National Association of REALTORS® Existing- Home Sales Report. The Report provides the real estate ecosystem, including agents and home buyers and sellers, with data on the level of home sales, price, and inventory.

Month-over-month sales increased in the Midwest and West, and fell in the Northeast and South. Year-over-year, sales rose in the Midwest and South, and fell in the Northeast and West.

“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” said NAR Chief
Economist Lawrence Yun. “However, mortgage rates are declining and more inventory is coming to the market, which should boost
sales in the coming months.”

Total Existing-Home Sales for August

• 0.2% decrease in total existing-home sales month-over-month to a seasonally adjusted annual rate of 4.0 million.
• 1.8% increase in sales year-over-year.

Single-Family-Homes Sales in August

• 0.3% decrease in sales to a seasonally adjusted annual rate of 3.63 million, up 2.5% from August 2024.
• $427,800: Median home price in August, up 1.9% from last year.

Condominiums and Co-ops Sales in August

• No change month-over-month; sales remain at a seasonally adjusted annual rate of 370,000 units, down 5.1% year-over-year.
• $366,800: Median price, up 0.6% from August 2024.

Mortgage Rates

• 6.59%: The average 30-year fixed-rate mortgage in August, according to Freddie Mac, down from 6.72% in July and 6.50% one year ago.

Sales of new single-family houses in August 2025 were at a seasonally-adjusted annual rate of 800,000, according to estimates
released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 20.5% above the July
2025 rate of 664,000, and is 15.4% above the August 2024 rate of 693,000.

Compared to August 2024 on a seasonally-adjusted basis, sales were up 15.4% overall with sales also up 21.0% in the South, up
40.9% in the Northeast, up 20.3% in the Midwest, but down 5.7% in the West.

Other

Real gross domestic product (GDP) increased at an annual rate of 3.8% in the second quarter of 2025 (April, May, and June),
according to the third estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.6%
(revised).

The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation
of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.

Compared to the first quarter, the upturn in real GDP in the second quarter primarily reflected a downturn in imports and an
acceleration in consumer spending that were partly offset by a downturn in investment.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.9%
in the second quarter, revised up 1.0 percentage point from the previous estimate.

More shifting of the landscape this month with the announcement of the Section 232 tariff on upholstered furniture imports, while we seemingly await additional announcements from the results of the 50-day investigation into other furniture categories including imported case goods. The timing of these announcements will again make for an interesting Fall High Point Furniture Market creating both challenges and opportunities for exhibitors.

Economic data was again mixed, though there are some positive trends with housing which will potentially accelerate with the long-awaited Fed interest rate cut in September and more cuts expected to come through the end of the year. Consumer confidence slipped again this month, which may be further impacted by the government shutdown and related activity, though presumably this will be short-lived.

As to our own stats program, it was good to see the year over year increases in both new orders and shipments this month
which bring the July 2025 year-to-date results almost even with the prior year and provide a glimmer of hope for the remainder of the year and into 2026.

We look forward to seeing many of you here in High Point in a couple weeks. Safe travels.