Overview of the US furniture market in the first quarter

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ITTO
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In the first quarter of 2014 the furniture market was affected by weather conditions in many parts of the US, according to the latest data by Smith Leonhard (Smith Leonhard Furniture Insights May 2014).

The overall data is positive for the furniture market, but individual companies' business conditions varied widely. While many reported strong growth in orders and shipments, some saw equally strong declines.

New furniture orders grew by 3% in the first quarter of 2014, compared to the same period last year. A majority of companies (62%) reported higher orders in March compared to 2013.

Furniture shipments also increased with more than 80% of companies reporting higher shipments than in March last year. Year-to-date shipments in 2014 were 4% higher than in the first quarter of 2013.

Inventory levels at distributors and manufacturers were reasonable for business conditions. Furniture inventories declined by 2% from the previous month, but they remain higher than in March 2013 (+5%).

Retail sales by furniture and home furnishing stores in the US increased by 8% in May according to US Census Bureau data. May sales were 3% higher than at the same time last year.

The furniture market outlook for 2014 is positive. GDP growth in the first quarter was affected by weather conditions, and the furniture industry expects stronger growth in the second and third quarters.

The High Point Market for home furnishings took place in April and attendees were generally very positive about business conditions. Unemployment has declined slightly since the start of the year, which should support consumer confidence and in turn furniture sales.

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