Home / Knowledge / News / Apparel/Garments / US consumer spending on garments sluggish in 2017
US consumer spending on garments sluggish in 2017
14
Jul '17
US consumer spending on garments has been more sluggish this year than overall spending. The average rate of year-over-year growth in apparel spending thus far into 2017 is only 0.1 per cent, compared to 2.9 per cent for overall spending. In May, clothing spending increased 0.8 per cent month-over-month, and was up 1.7 per cent year over year.

Price-wise, retail apparel prices decreased month-on-month in May, falling 0.9 per cent. Year over year, retail apparel prices were 1.2 per cent lower, Cotton Incorporated said in its latest Executive Cotton Update on ‘U.S. Macroeconomic Indicators & the Cotton Supply Chain’.

After being virtually unchanged in the first four months of the year, seasonally-adjusted prices per square metre (SME) of cotton-dominant apparel imports edged slightly higher in May (+$0.03/SME). Nonetheless, average sourcing costs remain near the lowest levels recorded outside of the 2008/09 recession, the report said.

Giving a macroeconomic overview, the report mentions that the US dollar has fallen 4 per cent against a broad collection of widely circulated currencies since January 2017. “While the magnitude of the decline may not appear large, it does signal an important reversal relative to recent years. Against the same broad collection of currencies, the US dollar had consistently strengthened since 2013, rising more than 25 per cent over the past four years before turning lower in recent months,” the report states.

Noting that relative interest rates are a factor that can affect exchange rates, the report points out that recent announcements from central banks around the world have affected interest rates. Another factor that can affect exchange rates are expectations relative to economic growth. In recent years, economic growth in the US has been more robust than it has been in many other developed economies, and demand for the dollar may have been supported by greater confidence in the US economic outlook. That situation is evolving.

In the globalised economy, exchange rates have a range of effects. For trade conducted in US dollars, a stronger dollar is often associated with lower price levels. The strengthening of the dollar in recent years has been a factor helping to pull costs of imported apparel lower. That influence may unwind if the dollar continues to lose ground. In many commodity markets, oversupply has outweighed currency-related influences. NY cotton has declined about 10 per cent since January. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 14th Apr 2021

Sri Lanka to ban fabric imports

Sri Lanka is all set to ban the import of textile fabrics in a bid to ...

Pic: Sorbis / Shutterstock.com

Apparel/Garments | On 14th Apr 2021

Bangladesh apparel exports dip 2.55% in July-March FY21

Readymade garment exports from Bangladesh declined by 2.55 per cent...

Pic: Shutterstock

Textiles | On 14th Apr 2021

US proposal for global minimum corporate tax finds takers in Europe

The idea of a global minimum corporate tax floated by the US has...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Siddhant Sinha,

Siddhant Sinha

Set up by Pradeep Sinha, a graduate engineer from Manipal Institute of...

Anupam Chakrabarty,

Anupam Chakrabarty

Headquartered in Finland, Helsinki, Lindström Group is a textile rental...

Shyam Gupta,

Shyam Gupta

Established by <b>Shyam Gupta</b> in 1978, Gargee Designer's (GD) offers...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search