New furniture orders in September 2018 increased 9% over new orders reported in September 2017, according to the most recent industry survey conducted by the Smith Leonard accounting and management consulting firm.
“While this increase at first appears substantial, it should be remembered that September 2017 new orders were down 10% when compared to September 2016, so the increase was really not that impressive,” Smith Leonard points out.
“That said, a 9% increase in September followed a 9% increase reported in August and followed three consecutive months of 5% increases. Only 56% of the participants reported increased orders in September.”
Year to date, new orders remain 6% over the same period a year ago. Last year, new orders year to date were 4% higher than September 2016. Some 76% of the participants reported year to date increases.
Shipment numbers in September were equal to September 2017, and 3% ahead of 2017 year to date. About 63% of those polled had increased shipments year to date.
Backlogs increased 5% from August to September due to dollar orders exceeding the increase in dollar shipments. September backlogs were 14% higher than September 2017 up from a 6% increase reported last month.
Receivables were up 5% over September 2017. Receivables are also up 1% from August 2018 in spite of a decline of 6% in shipments from August to September. Inventories were up 5% from September 2017 and up 2% from August 2018. Overall, inventory levels appear in line with current business conditions, Smith Leonard says.