Smith Leonard's October 2025 home furnishings report shows mixed trends in the US furniture market. New orders declined 3% month-over-month and compared to August 2024, while year-to-date orders remain down 1% versus 2024. Shipments rose 5% from July but were 6% lower than August 2024. Backlogs were flat year-over-year, and inventories increased 3%, reflecting possible tariff impacts.
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Consumer confidence edged down slightly in October to 94.6, with the Present Situation Index rising to 129.3 and the Expectations Index falling to 71.5, remaining below the 80 threshold indicating potential recession. Consumers cited prices and inflation as primary concerns, while references to tariffs declined but remained notable.
Housing data showed modest gains, with existing-home sales up 1.5% month-over-month to a seasonally adjusted annual rate of 4.06 million and rising 4.1% year-over-year. Falling mortgage rates and improving affordability contributed to the increase. Median home prices for single-family homes rose 2.3% to $420,700.
Industry experts note retail remains slow, with tariffs and ongoing government shutdowns impacting spending. Market optimism hinges on clarity from trade agreements with China and potential interest rate cuts to stabilise consumer demand.
Source: www.hfbusiness.com
