US Consumers put Brakes on Watch and Jewelry Sales

(IDEX Online) - Jewelry and watch sales slowed suddenly in March.  They were still growing, but at just 8.5 per cent year-on-year, compared with 28.4 per cent in February. Growth in March was the slowest we've seen since January 2020, during the very early days of the pandemic. Year-on-year growth peaked last April - up by an unprecedented 218 per cent - indicating strong recovery from a very low base. It has since levelled off, but has never, until now, dipped below 20 per cent. Sales figures for January and March have been revised downwards slightly, based on actual rather than estimated transactions. Growth in January has been amended from 24.0 per cent to 21.6 per cent, and February from 30.1 per cent to 28.4 per cent.

Jewelry sales rose by 8.8 per cent and watch sales were up 7.0 per cent during March, an average increase of 8.5 per cent.

The U.S. Department of Commerce has, for all practical purposes, ceased reporting sales by Specialty Jewelers.  The last figures it released were for February 2021. However it has published its first set of revisions in almost a year, which could suggest it is about to resume its monthly reports. Sales for virtually all months from January 2019 to February 2021 have been revised down, based on actual rather than estimated sales. February was down by almost 8.5 per cent.  IDEX Research will publish any new updates on specialty jewelers if and when they become available.

Assessment

Spending on watches and jewelry in the US faltered suddenly in March after months of sustained growth. The sector is in turmoil, over war, sanctions, inflation - and uncertainty over all three. Growth in sales was negligible in 2019, but improved in 2020 (if we exclude the first Covid months), and positively surged through 2021 to a decade-high figure of over $115bn. Will March 2022 prove to be a turning point?