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Warmer weather in March enables sales of spring apparel

12
Jun '07
Personal consumption of clothing in the United States may have increased year-on-year in March, however, the consumer spending outlook in the United States remained cautious.

Spending on clothing increased moderately year-on-year, a rise which was expected and can be explained by unseasonably warm weather in March and an increase in clothing demand.

Warmer weather in March enabled sales of spring apparel to recover after an unexpected cold snap in February had reduced sales. US consumer demand, including demand for clothing, is being boosted by a tight labour market and higher wages.

The US Conference Board's Consumer Confidence Index, fell in March and April, and increased in May. The May result seems to be primarily due to an upbeat assessment of current business conditions.

Consumers continue to have weaker short-term expectations largely because of rising gasoline prices and their view of the job market has not become any more positive. While some way off, continued poor consumer confidence could hurt sales in the important upcoming Autumn/Winter season.

Australian Wool Innovation Limited


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