Welcome to Furniture Industry News for Thursday, September 4, 2025.

I'm here to bring you the latest updates and insights from across the furniture industry.

Today we're covering some mixed signals in the market, from manufacturing challenges to positive sales reports.

Plus what's happening with employment and a major retailer's impressive performance.

Let's dive right in, starting with the big picture on manufacturing.

There are some warning signs we need to talk about.

The US Manufacturing sector just wrapped up its sixth straight month of contraction in August.

According to the Institute for Supply Management's latest report, the manufacturing PMI came in at 48.7%, which is up slightly from July's 48%.

But remember, anything below 50% means the sector is still shrinking.

What's particularly concerning for our industry is that furniture and related products was specifically listed among the 10 industries reporting overall contraction.

Now, it wasn't all bad news.

In the report, new orders for furniture actually returned to growth at 51.4%, jumping up more than 4 points from July.

That's encouraging because it suggests demand is still there.

But here's the catch.

Production fell to 47.8%, meaning we're seeing contraction in actual manufacturing output.

The employment picture in furniture manufacturing also remains challenging, with the employment index at just 43.8%.

And if you're dealing with suppliers, you might have noticed deliveries slowing down.

The supplier deliveries index hit 51.3%, which signals those delays many of you have probably been experiencing firsthand.

Speaking of employment, let's look at what's happening more broadly in the job market, because this affects both our workforce and our customers.

The ADP National Employment Report just came out and it shows private sector job growth slowing down significantly.

We only saw 54,000 jobs added in August, compared to over 106,000 in July.

Here's what really matters for our manufacturing actually lost 7,000 jobs last month.

That's a concerning trend, especially when you consider that many manufacturers are taking a wait and see approach to hiring right now.

Experts are pointing to several factors behind this caution, including trade policy uncertainties and immigration concerns that are creating potential labor shortages.

One analyst noted that immigrants make up about 20% of the manufacturing workforce in the US and current immigration policies are adding to the uncertainty.

Many furniture manufacturers are working with their existing workforce rather than expanding, which explains some of the production challenges we're seeing.

But here's where things get more interesting.

While manufacturing is struggling, we're actually seeing some positive signs in furniture orders.

The latest Furniture Insights report from Smith Leonard shows that residential furniture orders were up 3% in June compared to the same month last year.

Orders totaled just over $2 billion, with 55% of companies surveyed reporting increases.

Now there's a flip side to this story.

While orders were up, shipments were down 4% compared to June last year, hitting about $2.12 billion.

This gap between orders and shipments is worth paying attention to because it might reflect some of those production and supply chain challenges we talked about earlier.

Looking at the year to date numbers, new orders for the first half were down 2% compared to last year, totaling 1, 2.

Shipments for the first half were also down 1%, coming in at $13.1 billion.

What's particularly noteworthy is that backlogs dropped 8% compared to June last year, now sitting at $2.4 billion.

This could suggest that companies are working through their order backlogs more efficiently, which would be good news for delivery times.

The report also showed some workforce trends that align with what we're seeing in the broader manufacturing data.

Factory and warehouse employment was down 4% from June last year, though payroll expenses were still up 2%.

This suggests companies are paying more per worker, possibly to retain skilled employees in a tight labor market.

Now let's shift gears and talk about retail, because this is where we're seeing some genuinely encouraging news.

Macy's just reported their strongest same store sales growth in 12 quarters, which is significant for furniture manufacturers who sell through department stores.

Macy's total sales were down 2.5% to $4.8 billion, but that includes the impact of store closures they've been implementing.

When you look at comparable sales stores that have been open, they were up 0.8% on an owned basis and nearly 2% when you include licensed and marketplace sales.

What's particularly relevant for furniture professionals is that Macy's specifically called out strong performance in textiles and mattresses.

They also mentioned fine jewelry, which often shares floor space and customer shopping patterns with home furnishings.

The company's CEO Tony Spring, highlighted that they're seeing success with product curation and brand selection, which could create opportunities for furniture manufacturers who are looking to get their products in front of department store customers.

Macy's also raised their full year outlook, now expecting sales between 21.1 billion and 21.4 billion.

They narrowed their same store sales forecast to show they expect comp sales to decline between 1.5% and 0.5%, still negative, but better than their previous forecast.

This suggests they're feeling more confident about the retail environment heading into the important fall and holiday selling seasons.

The success at Bloomingdale's was even more impressive, with total sales up 4.6% and comparable sales up 5.7%.

This high end performance might signal that affluent consumers, who are often key furniture buyers, are still spending on home goods and furnishings.

Looking at all these data points together, we're seeing a furniture industry that's dealing with some real challenges, but also showing signs of resilience.

Manufacturing is under pressure, employment is tight and production is struggling, but orders are growing.

Major retailers are performing better than expected, and there are pockets of strength in the market for furniture professionals.

This mixed picture suggests a few key things to watch.

First, supply chain and production challenges aren't going away anytime soon, so building in extra time for manufacturing and delivery remains critical.

Second, while the job market is cooling, consumer demand for furniture is still there.

You just need to be strategic about how you meet it.

Finally, the success we're seeing at retailers like Macy's suggests that companies focusing on product curation and customer experience are are finding ways to win, even in a challenging environment.

The key takeaway is that while the broader manufacturing sector is facing headwinds, there are still opportunities in the furniture industry for companies that can navigate the current challenges effectively.

Keep an eye on those order trends, watch your supply chains closely, and focus on the customer experience that seems to be driving success in retail right now.

That wraps up today's furniture industry news.

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We'll be back soon with more insights and analysis to help you stay ahead of the trends that matter to your business.