US Watch and Jewelry Sales Down for a Fifth Month
April 04, 23
(IDEX Online) - Watch and jewelry sales in the US were down for a fifth consecutive month in February, amid ongoing fears of a recession and financial crisis. They fell 3.0 per cent year-on-year, according to the US Department of Commerce. In January sales dropped by just 0.3 per cent, a figure that was originally reported as 2.1 per cent but which has now been revised up based on actual rather than estimated sales.
Overall retail sales in the US are expected to remain sluggish throughout 2023, says the National Retail Federation (NRF) with inflation at six per cent, interest rates rising and unemployment expected to exceed four per cent by the end of the year. Consumer spending increased by just 0.2 per cent in February, down from 2.0 per cent in January, according to Department of Commerce figures.
Growth in watch and jewelry sales has been slow - below six per cent for every month since May 2022 - but has always managed to stay just about positive.
The last time sales growth reached a low point like this was as we emerged from the initial Covid lockdowns. It was 1.1 per cent in June 2020, on its way up after hitting a record -55.9 per cent in April of that year.
Jewelry sales fell by 3.4 per cent and watch sales fell by 1.4 per cent during February, an average fall of 3.0 per cent. In January, jewelry sales were down 0.5 per cent, based on revised figures, and watch sales actually rose slightly, by 0.8 per cent.
Assessment
A mood of caution persists. The US economy is likely to grow by just 0.9 per cent this year, less than half that of 2022, according to KPMG. And consumer spending predicted to "stall, but not collapse".