US Watch and Jewelry Sales: Another Month of Decline

(IDEX Online) - US watch and jewelry sales fell yet again during April, by 7.1 per cent according to figures released by the US Department of Commerce. That's an improvement on the 8.8 per cent drop in March, but only a slight one. Year-on-year sales showed modest growth from May 2022, but dipped below zero in October 2022, where they have remained ever since (with the exception of an 0.8 per cent rise in January). 

US inflation has been slowing recently. It was 4.9 per cent in April, but the cumulative effect of many months of price rises (peaking at over nine per cent last June) has clearly hit many consumers. The Federal Reserve has been hiking interest rates month in, month out, and most economists say a recession is now inevitable.

One additional factor is a legacy of Covid - the "engagement gap". Signet, the US's biggest jewelry chain with 2,800 outlets, says the pandemic was a passion killer. The average time from the first date to marriage is just over three years, which is why the jewelry sector is now feeling the effects.

Jewelry sales fell by 7.5 per cent and watch sales fell by 5.4 per cent during April, an average fall of 7.1 per cent. Jewelry and watch sales for March have been adjusted from -9.2 per cent to -8.8 per cent, based on through-the-till rather than estimated sales. February has been adjusted from -6.8 per cent to -6.5 per cent.

Assessment  We've seen many consecutive months of high inflation and interest rate hikes in the US. The prospect of a recession looms large and consumer sentiment remains low.