Furniture industry sees bright spots
Furniture hit the high marks in October with year-over-year growth in every category.
According to Ken Smith, a CPA with Smith Leonard and the author of the monthly newsletter Furniture Insights, new orders in October were up 6 percent from October 2011.
“Approximately 75 percent of our participants reported increased orders in October. This was one of the highest percentages in quite some time,” Smith said. “Orders may have been slightly impacted by High Point Market dates as market was a week earlier this year, though we doubt there would be that much impact.”
Year to date, new orders remained 5 percent ahead of 2011. About 72 percent of the participants have reported increased orders, up from 65 percent last month. Smith said this also was one of the highest percentages based on year-to-date data in quite some time.
October shipments were up 5 percent compared to the previous year and even with September. Year to date, shipments remained 7 percent ahead of the same period a year ago. About 65 percent of the participants have reported year-to-date increases, up from 63 percent reporting last month.
Backlogs increased 15 percent over October 2011, up from a 13 percent increase reported last month.
Smith said with orders in dollars up over shipments, backlogs increased 3 percent from September levels.
Receivables levels were 6 percent higher than October 2011 but were 1 percent lower than September.
“Both these changes seem in line with the 5 percent increase in shipments over last year and the flat September to October shipments comparison,” Smith said.
New orders in 2012 increased each month except for April, which Smith said was because of the timing of this year’s spring market compared to 2011’s dates for market.
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