U.S. furniture manufacturing continued to contract in November 2025, marking the ninth consecutive month of decline, as rising tariffs and material costs pressured margins. The Institute for Supply Management (ISM) Manufacturing PMI reported a 0.5-point drop to 48.2%, reflecting slower supplier deliveries, lower new orders, and reduced employment, though the broader U.S. economy continued to expand.
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Furniture and wood products reported weaker employment, inventories, and imports, highlighting softness in domestic and international demand. Logistical challenges and tariff-driven cost increases for steel, aluminium, and imported components constrained production and planning. A wood products respondent noted that low confidence and policy unpredictability left customers reluctant to build inventories or plan expansions.
Tariffs and rising steel and aluminium prices continued to drive cost pressures. The ISM Prices Index rose to 58.5% for the 14th consecutive month. New orders for furniture declined for the third month in a row, while employment fell to 44%, marking a tenth consecutive month of contraction.
Order backlogs contracted sharply, with inventory reductions ongoing. Supplier deliveries improved slightly, but furniture remained among the slower sectors. Any recovery in production depends on potential increases in consumer or housing demand, though uncertainty over tariffs and pricing continues to cloud near-term outlooks.
Source: www.furnituretoday.com
