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From Home Furnishing Business
Smith Leonard Releases Outlook for July 2024
August 4,
2024 by Karen Parrish in Business Strategy, Industry 
Smith Leonard released their outlook report for July 2024 concerning the industry and economic trends nationwide. To view their full report visit their website, here.
Highlights from the report follow:
Sales at furniture and home furnishings stores were up 0.6% in June 2024 from May 2024 on a seasonally-adjusted basis, but down (4.0)% from June 2023.
Real gross domestic product (GDP) increased at an annual rate of 2.8% in the second quarter of 2024, according to the "advance" estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP increased 1.4%.
The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Compared to the first quarter, the acceleration in real GDP in the second quarter primarily reflected an upturn in private inventory investment and an acceleration in consumer spending. These movements were partly offset by a downturn in residential fixed investment.
According to our latest survey of residential furniture manufacturers and distributors, new orders were down (3)% in May 2024 compared to May 2023 reversing recent trends and perhaps a normalization of the large increase we saw in April 2024. Approximately half of the participants reported increased orders in May 2024 compared to a year ago. However, new orders were once again flat compared to the prior month of April 2024. Year to date through May 2024, new orders are up 6% compared to 2023.
Shipments and Backlogs
May 2024 shipments were down (4)% from May 2023, but flat with April 2024. Shipments in May 2024 were down for approximately 75% of the participants compared to May 2023.
Year to date through May 2024, shipments are down (8)% compared to 2023, though presumably that trend will begin to turnaround in the coming months with the increased order volumes.
May 2024 backlogs were down (6)% compared to May 2023, and down (1)% from April 2024.
Receivables and Inventories
Receivables and Inventories Receivable levels were down (7)% from April 2024, and also down (6)% from May 2023, with the latter being materially in line with shipments for the same period.
Inventories were materially consistent with April 2024 at down (2)%, and down (17)% from May 2023, which is in line with prior periods and current operational levels.