Furniture orders continue to fall

Orders for new residential furniture continue to decline, dropping 16 percent, year-over-year, in July, according to the latest survey of manufacturers by High Point, N.C.-based consulting and accounting firm Smith Leonard.

Year to date, orders for new furniture are 20 percent lower in 2009 than 2008.

Shipments of completed orders in July were off by 19 percent, and year-to-date shipments are off by 20 percent from a year earlier.

Factory employment also continues to fall, with the number of employees down 20 percent, year-over-year, in July, and total payrolls 17 percent lower.

Survey author Ken Smith said the good news in the report is that, while total orders are still down, more manufacturers are seeing an increase in activity compared with recent months.

"Several company executives we have spoken with seem to feel that we may have hit bottom over the last few months, as orders appear to be stabilizing somewhat," he said.