Why Furniture's Future Hinges on Loyalty, Tariffs, and Credit

Originally published October 3, 2025. This version was rebuilt from NAHB, ISM and Synchrony releases for the FIN archive, and the facts are as of that date.

The first days of October 2025 brought a mixed set of readings for anyone selling furniture. Housing stayed stuck, factories were still contracting, and the business of financing big purchases was changing hands.

The short version

• NAHB's builder confidence index held at 32 in September, with 39% of builders cutting prices.
• ISM's manufacturing PMI came in at 49.1, still in contraction.
• Furniture makers reported contraction overall but growth in new orders.
• Synchrony agreed to acquire Versatile Credit, a credit access platform used by furniture retailers.

Builders hold, and discount

The NAHB/Wells Fargo Housing Market Index stayed at 32 in September, and 39% of builders said they had cut prices. Expectations for future sales did rise to a six-month high as mortgage rates eased.

New homes are one of the cleanest sources of furniture demand. Builders cutting prices to move inventory meant buyers were still out there, just harder to win.

Factories still contracting

ISM's September manufacturing PMI was 49.1, the seventh straight month under 50. Furniture and related products was on the list of industries contracting, yet it was also among those reporting growth in new orders.

That pairing suggested factories were seeing some business come back but were not ready to ramp production while tariff costs were unsettled.

Tariffs, a risk and an opening

New Section 232 duties on upholstered wooden furniture and on kitchen cabinets and vanities were set to start October 14. For domestic makers and retailers with domestic sources, the duties narrowed the price gap with imports.

Credit changes hands

Synchrony said it would acquire Versatile Credit, whose software connects a merchant's shoppers with several lenders at the point of sale. Furniture is one of the industries Versatile serves.

For stores that depend on financing to close big tickets, the platform behind the credit offer matters as much as the lender.

Holding on to the customer

With housing slow and prices under tariff pressure, the stores most likely to keep customers were the ones that could offer the right financing and a reason to come back.

Related on FIN

• Move-In Furniture Tickets Are Drying Up
• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.

Sources

• National Association of Home Builders, Builder confidence steady, September 2025
• Institute for Supply Management, Manufacturing PMI report, September 2025
• The White House, Proclamation adjusting imports of timber, lumber and their derivative products (Sept. 29, 2025)
• Synchrony Financial, Versatile Credit bringing credit access platform to Synchrony