US luxury credit-card purchases decline for third month as midterms approach
Credit-card spending on luxury goods in the United States fell for a third straight month in September, according to Citi data, as the country heads toward the November 3 midterm elections.
Data from Citi, based on millions of credit-card transactions, indicate that US spending on luxury brands slipped for the third consecutive month in September, with a 6.0% decline compared with a year earlier. The drop follows identical 4.0% falls in July and August and comes as voters prepare for the November 3 midterm elections, a period traditionally marked by heightened consumer caution. Luxury groups such as Tapestry, LVMH and Ferragamo are most exposed to the US market, and while wealth effects from equity markets may support top-tier buyers, overall demand is weakening.
Category-level analysis shows modest gains in leather goods and ready-to-wear, but further declines in watches and jewellery. Price increases this year have been low single-digit for most apparel and leather brands, slightly below the modest hikes by watch and jewellery makers. Upcoming earnings reports from LVMH, Kering and other major houses are expected to reflect the softening US outlook.
Why it matters
The decline signals reduced confidence among affluent US shoppers, potentially slowing recovery for luxury brands ahead of a pivotal election.
In this story
