New data from Smith Leonard's Furniture Insights for September 2025 shows stabilising momentum in the furniture industry, with encouraging signs following months of volatility. New orders increased by 6% in July compared to June, reversing the previous month's 9% decline. Compared to July 2024, orders rose 13%, narrowing the year-to-date decline to just 1%.
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Shipments were down 2% from June but rose 3% year-over-year. Backlogs fell 4% compared to July 2024 but increased 2% from June, suggesting modest forward movement. Receivables and inventory levels remained steady, while staffing figures continued a slow decline, pointing to cautious workforce management through natural attrition.
Nationally, the US economy presented mixed signals. Consumer confidence dipped again in September, with the Expectations Index remaining below the recession-warning threshold of 80 for the eighth straight month. However, the housing market offered some optimism, with existing-home sales stabilising and new single-family home sales jumping 20.5% from July and 15.4% year-over-year.
The recent announcement of Section 232 tariffs on upholstered furniture imports has added uncertainty ahead of the Fall High Point Furniture Market. However, signs of recovery in orders, shipments, and housing suggest a cautiously optimistic outlook as the industry approaches 2026.
Source: www.smith-leonard.com
