Industry still hanging in while home sales start to rise
San Francisco, CA -- (SBWIRE) -- 02/11/2013 -- November saw some off numbers for the furniture industry, which was most likely due to the market dates, according to experts.
According to the monthly newsletter Furniture Insights released by Smith Leonard, sales in november were down 1% from the 4% rise from October.
“Monthly comparisons around the High Point Market dates are sometimes a bit misleading due to timing of Market and related orders written,” said Ken Smith, an accountant and author of Furniture Insights.
November of 2011 orders were up 13% from the year prior, but the October 11 market ended on October 27. “Obviously, all Market orders were not written by the end of October and some fell into November,” Smith said. “This year, Market was a bit earlier in October, so we imagine that has had some impact on the monthly results.”
The new orders still remain at 5% ahead of the 2011, year-to-date. Shipments meanwhile ticked up in November, and shipments in November saw a 3% increase from 2011.
“Last November (2011), shipments were 10 percent higher than November 2010, so we are comparing to a relatively strong month last year,” Smith said.
The backlogs showed that in November were at a 8% increase from the November 2011 numbers, but down from a 15% reported the previous month. “As much as business in general does not ‘feel’ that great, we seem to keep plugging along,” said Smith.
Smith also attributes the furniture industry for “hanging in there” to handling home sales.
“We think the significant pickup in housing has to be having the most impact. Existing-home sales in 2012 were the highest in five years,” Smith said. “More housing sales create demand for furniture. Better prices mean fewer people worried about being upside down in their mortgage. And tighter lending means that those who are buying new homes have more room in the budget for furniture versus being up to their neck in mortgage payments.”
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