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US Luxury Spending Falls for Third Month as Confidence Weakens
Americans spent less on luxury goods in September than they did a year earlier.
This was the third month in a row that luxury spending fell.
People are worried about prices, interest rates, and finding or keeping jobs.
Measures of consumer confidence also went down.
Still, people continued to spend on things such as cars, restaurants, and clothing.
The US economy grew in the second quarter.
This means spending has not stopped, but people seem less sure about the future.
Luxury companies are watching to see whether this cautious mood continues.
US credit-card spending on luxury goods fell 6% year over year in September, marking a third consecutive monthly decline.
Spending had fallen 4% in each of July and August, according to Citi data.
Consumer confidence weakened, with the Conference Board index dropping to 81.9 in September from 88.6 in August.
US employers added 29,000 jobs in September, and unemployment edged up to 4.2%.
Overall consumer spending and economic growth continued, even as inflation and higher borrowing costs pressured households.
- Who
- US consumers and luxury brands.
- What
- Luxury-goods credit-card spending fell 6% year over year, its third consecutive monthly decline.
- Where
- The United States.
- When
- September, ahead of the November 3 midterm elections.
- Why
- The articles link the decline to weaker consumer confidence, persistent inflation, higher borrowing costs, and concerns about jobs.
Signs of consumer caution
Signs of continued resilience
Household outlook
Signs of consumer caution
Luxury spending and consumer-confidence measures fell, while concerns about prices, interest rates, and jobs increased.
Signs of continued resilience
Consumer spending rose in August, and the economy continued to expand.
Luxury demand
Signs of consumer caution
Demand for watches and luxury jewellery weakened further, adding to the sector's prolonged downturn.
Signs of continued resilience
Leather goods and ready-to-wear spending improved sequentially in September, and brands exposed to affluent consumers may be relatively resilient.
Key facts
- Luxury spending
- Down 6% year over year in September.
- Prior monthly declines
- Down 4% in both July and August.
- Conference Board confidence
- 81.9 in September, down from 88.6 in August.
- Consumer sentiment
- University of Michigan index was 48.1 in September, versus 51.7 in August and 55.1 a year earlier.
- Jobs
- Employers added 29,000 jobs in September; unemployment edged up to 4.2%.
- Inflation
- The personal consumption expenditures price index rose 3.4% year over year in August, above the Federal Reserve's 2% target.
- Consumer spending
- Rose 0.9% in August after being broadly flat in July.
- Economic growth
- Real US GDP grew at a 2.2% annualized rate in the second quarter.
Sources
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