The July 2025 edition of Furniture Insights® reports a mixed yet cautiously optimistic picture for the US furniture market, with modest improvements in new orders and consumer sentiment set against ongoing housing challenges and global trade uncertainties.
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According to the latest data, new furniture orders in May 2025 were down 1% compared to May 2024, but up 11% compared to April 2025. Year-to-date figures through May show orders down 3% from 2024 levels. Shipments fell 2% year-on-year in May, remaining flat month-on-month, with a 1% year-to-date decline. Backlogs were 10% lower than May 2024 but rose 2% from April 2025.
Receivables dropped 6% from April and 2% from the prior year, while inventories and employee levels remain in line with recent months. 'With the gradual decline in employees, it does appear companies are allowing some normal attrition to occur without rushing to find replacements,' the report noted.
Consumer confidence has shown slight improvement. The Conference Board Consumer Confidence Index® rose 2.0 points in July to 97.2, with the Expectations Index increasing 4.5 points to 74.4. 'Consumer confidence has stabilised since May, rebounding from April's plunge, but remains below last year's heady levels,' said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. She added: 'In July, pessimism about the future receded somewhat, leading to a slight improvement in overall confidence… However, their appraisal of current job availability weakened for the seventh consecutive month, reaching its lowest level since March 2021.'
In housing, existing-home sales fell 2.7% in June 2025 compared to May, with mixed regional trends. 'Multiple years of undersupply are driving the record high home price,' stated NAR Chief Economist Lawrence Yun. 'Home construction continues to lag population growth… More supply is needed to increase the share of first-time homebuyers… If mortgage rates decrease in the second half of this year, expect home sales to increase across the country.'
Median home prices in June reached $441,500 for single-family homes, up 2% year-on-year, and $374,500 for condominiums and co-ops, up 0.8%. Mortgage rates averaged 6.75% in mid-July.
Nationally, GDP rose 3.0% in Q2 2025 following a 0.5% decline in Q1, driven by lower imports and stronger consumer spending. Furniture and home furnishings store sales in June were flat month-on-month but 4.5% higher than a year earlier, with year-to-date sales up 5.7%.
Reflecting on the figures, Assurance Partner Mark Laferriere said: 'It was really good to see May's 11% average increase in month-over-month new orders for participants in our survey after last month's 7% decline, which when averaged out seems more in line with earlier months and other industry reporting.' He added: 'This month we saw consumer confidence at least begin to stabilise, and some positive trends with GDP, but housing continues to bump along while the Fed again takes a wait and see approach on inflation and rate cuts.'
Laferriere also highlighted trade policy as a key factor: 'Dealing with the ever-evolving tariff landscape continues to be top of mind… After about six months of uncertainty, we are hopeful this will provide consumers with a return to some sense of normalcy and the direction the industry needs to effectively operate and capitalise on the many positive factors and opportunities that remain in the market for the remainder of the year and beyond.'
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