Residential Furniture Sales Increase 27% Year-Over-Year in December

Smith Leonard’s latest Monthly Furniture Insight survey of residential furniture manufacturers and distributors reported that December sales were 27% higher year-over-year. The 27% increase was higher than November’s 17% increase, which had been the first month in the past 6 months that orders had slowed somewhat. The December increase brought the year-to-date increase in orders up to a 15% increase for the year. Shipments were up 5% over December 2019, again lagging behind new orders. Shipments were down -2% from November, but that was likely due to the shutdown that many had over the holidays. Shipments continue to be a problem as imported goods are being held up by lack of containers, as well as goods to go on containers and shipping and dock issues. For the year, shipments were down 6%. The shipment backlogs grew again in December and were 168% higher than December 2019. Smith Leonard is reporting that they are hearing more and more about cancellations of orders. If there is any good news, it is that most companies are in the same boat. For that matter, it is not just furniture where there are backlogs. The same apparently is true for appliances, cabinets, and even lumber for homes.