The economy in the United States grew at a 2 per cent seasonally-adjusted annual rate in the third quarter (Q3 2021), The Bureau of Economic Analysis (BEA) estimates. This is lower than the 6.7 per cent growth in Q2 2021 and the 6.3 per cent growth registered in Q1. One of the reasons for the slower overall growth was a slowdown in consumer spending.

Consumer spending growth was 1.6 per cent annualised rate in Q3 2021. In Q2, it was 12 per cent and in Q1, it was 11.4 per cent.

The spending slowdown was focussed on physical goods instead of services. Service spending, which includes outlays for travel and restaurants, was disproportionately hit by the pandemic.

While service spending was lower, consumer spending on goods rose. Slower spending on goods in the third quarter (minus 9.2 per cent) and higher spending on services (7.9 per cent) suggests a rebalancing is under way.

Despite slower spending on goods overall, spending on clothing remains strong. Year-over-year, growth in spending on apparel was 19 per cent higher in Q3. Relative to the same period in 2019, consumers spent 25.4 per cent more this year.

US apparel imports have been strong in 2021. In terms of weight volume, apparel imports are on pace to reach their highest level since 2010. 

Imports of home textiles are on pace to set a new record, according to an update this month from Cotton Incorporated, which has a mission to improve the demand for and profitability of cotton.

After three months of decline, the Conference Board’s Index of Consumer Confidence increased in October. The current value of 113.8 is well above the long-term average of 93.

By Fibre2Fashion 
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