From Banking Settlements to Import Surges. Key Updates for the Furniture Industry

Originally published October 11, 2024. This version was rebuilt from TD Bank Group's resolution release, the BLS consumer price index and NRF's Global Port Tracker for the FIN archive, and the facts are as of that date.

The second week of October 2024 brought a record banking penalty, a small rise in furniture-related prices and a sign that imports were holding up after the port strike.

The short version

• TD Bank Group announced a total payment of approximately US$3.09 billion to resolve AML investigations.
• BLS said consumer prices rose 2.4% over the 12 months to September.
• NRF's Global Port Tracker forecast October imports at 2.12 million TEU, up 3.1% from a year earlier.

Banking sector shake-up

TD Bank Group said it reached a resolution of U.S. anti-money laundering investigations including a total payment of approximately US$3.09 billion. Its two U.S. banks may not exceed US$434 billion in total assets, and new products and stores face stricter approval.

The asset cap and stricter approvals limit how fast the bank can grow in the U.S., including lending to retailers and manufacturers, while it fixes its program under a monitor.

Prices edge up

BLS said the Consumer Price Index rose 0.2% in September and 2.4% over 12 months, the smallest annual increase since February 2021.

The household furnishings and operations index rose 0.2% in September after a 0.3% decline in August, and was 0.5% lower than a year earlier.

Imports stay strong

NRF and Hackett Associates forecast October imports at 2.12 million TEU, up 3.1% year over year, and said the three-day strike did not appear to affect national totals. August imports hit 2.34 million TEU, up 19.3%.

Hackett said the surge reflected contingency imports ahead of the strike rather than a jump in demand. Retailers that shifted cargo to the West Coast faced added warehousing and transportation costs.

What this means

Credit conditions, prices and imports all moved in small ways that mattered for furniture margins. The bigger risk was still the mid-January port deadline.

Related on FIN

• The Freight Mafia's New Playbook
• Furniture Sales Rose. Costs Are Rising Faster.

Sources

• TD Bank Group, TD Bank Group announces resolution of AML investigations (Oct. 10, 2024)
• U.S. Bureau of Labor Statistics, Consumer Price Index, September 2024
• National Retail Federation, October import cargo to remain strong despite three-day strike (Oct. 2024)