The US furniture manufacturing sector contracted again in November, with lower employment, imports, and inventories. Tariffs and material costs continued to pressure margins, with steel and aluminum prices driving increases across categories. The Institute for Supply Management (ISM) Manufacturing PMI Report showed a faster rate of contraction, with the overall index registering 48.2%. Furniture and wood products both logged declines, with shared material inputs and market overlap in home goods, construction, and millwork contributing to the weakness.
The sector faces uncertainty, with customers taking prompt orders only and lacking confidence to build inventory or make expansion plans. Tariff-related uncertainty dominates manufacturers’ concerns, with difficulties stemming from shifting trade rules, rising landing costs, and slowed customs processing. Increased steel and aluminum prices have pushed up costs throughout the manufacturing value chain.
New orders contracted for a third straight month, and employment remained weak, falling to 44%. Furniture makers are managing costs and delaying hiring decisions, with order backlogs contracting sharply. Inventories ticked up modestly, indicating slower contraction.
