US garment prices surge in March to highest in over a year: Cotton Inc

However, the broader economic landscape presents a more turbulent picture. The Conference Board reported that its Index of Consumer Confidence fell for the third consecutive month in April, dropping 6.1 points to a low not seen since July 2022. This decline in consumer confidence aligns with cautious consumer spending patterns observed over recent months, as per Cotton Incorporated’s Executive Cotton Update: U.S. Macroeconomic Indicators & the Cotton Supply Chain - May 2024.

On the other hand, import costs for cotton-dominant apparel showed a decline of 0.6 per cent month-over-month in March. Despite this monthly decrease, sourcing costs relative to 2019 levels have surged by 6.2 per cent, reflecting ongoing challenges in the global supply chain.

Consumer spending on clothing also reflected this caution, with a slight decline in March following a weak period for clothing sales last year. Overall, consumer spending adjusted for inflation increased by 0.5 per cent month-over-month in March, showcasing a rebound from earlier in the year.

Amidst these domestic economic indicators, the US job market showed slower growth with only 175,000 new jobs added in April, the smallest gain since October. This was coupled with a slowdown in wage growth, although it still outpaces the current inflation rate, which the Federal Reserve closely monitors.

The Fed's decision to hold interest rates steady in early May after a slight uptick in inflation earlier in the year reflects a strategic choice to maintain economic stability. However, this decision comes at a time when the US economy is expanding at its slowest pace since a contraction in the second quarter of 2022, growing only 1.6 per cent in the first quarter of 2023, as per the Executive Cotton Update.

Internationally, the IMF has updated its global GDP projections, predicting steady growth but acknowledging that the pace is sluggish compared to previous decades. The forecast for the US in 2024 is slightly more optimistic, expecting an expansion of 2.7 per cent.

As the economic landscape continues to evolve, the interplay between consumer behaviour, inflationary pressures, and job market dynamics will be crucial in shaping the economic outlook for the coming months.

Fibre2Fashion News Desk (KD)