US Watch and Jewelry Sales Remain Slow During JulySeptember 11, 23
(IDEX Online) - US watch and jewelry sales remained in negative growth for a sixth consecutive month during July, according to the latest Department of Commerce figures.
But the year-on-year drop for the month - 2.4 per cent - was half the figure for June, which has been revised down to 4.8 per cent, based on actual rather than estimated transactions.
March and April saw sales drop by 8.8 per cent and 6.4 per cent respectively. May was 2.0 per cent.
Inflation and rising interest rates are keeping a tight lid on consumer spending, especially on luxury goods. Inflation rose slightly during July to 3.2 per cent, after many months of decrease. And interest rates reached a 22-year high as the Federal Reserve announced its 11th increase since March 2022, to 5.5 per cent.
Despite the gloomy figures, the U.S. Census Bureau said overall retail sales in July were up 0.7 per cent from June and up 3.2 per cent year on year. It did not provide a breakdown for watch and jewelry sales.
Swiss watchmakers, meanwhile, reported a slight dip in sales globally during the month, but saw a 5.2 per cent year-on-year increase in US sales ($382m).
Jewelry sales fell by 2.7 per cent and watch sales fell by 1.3 per cent during June, an average fall of 2.4 per cent.
Sales of watches and jewelry have been subdued now since March 2022, hovering around the zero growth line, and sometimes dipping below, as has been the case for the last six months.