US Watch and Jewelry Sales Show Some Signs of Recovery in May

(IDEX Online) - US watch and jewelry sales picked up a little during May. They were still down year-on-year - but showed some improvement on April, which was in turn better than March, which suffered the biggest fall since the pandemic.

Sales during May were down 4.8 per cent on the same month last year, compared with a year-on-year drop of 7.2 per cent in April (revised from last month's 7.1 per cent figure) and 8.8 per cent in March.

Natural diamond prices are falling month by month, and lab growns are in a "race to the bottom" as manufacturers ramp up production and consumers are drawn in by bigger stones for less bucks. The net result is a lower overall spend on diamonds.

But the figures do suggest some degree of stabilization, in spite of further gloomy forecasts for the US economy.

Earlier this month the Federation of the Swiss Watch Industry reported "robust growth" in US sales during May, up 9.8 per cent year-on-year to $400m.

 Jewelry sales fell by 5.1 per cent and watch sales fell by 3.3 per cent during May, an average fall of 4.8 per cent.

Assessment

We may be seeing early signs of the markets stabilizing in the face of two new constants - financial and geopolitical uncertainty and consumers' increasing appetite for lower-priced lab growns.