For the past five months, spending growth on apparel in the US has been lower than growth in overall spending,

Several spending categories have experienced price decreases. US gasoline prices have been declining since June. The rate of year-over-year increases in US clothing prices has slowed from rates near seven per cent to those below five per cent.

While there has been a deceleration in hiring in August, jobs are still being added at a rate above the long-term average. The US economy added 3,15,000 jobs in August. The unemployment rate increased marginally, from 3.5 per cent to 3.7 per cent. This was primarily due to a substantial month-over-month increase in the labor force. The larger increase in workers relative to the labor force over the past year implies a tightening in the labor market.

In July, overall consumer spending increased 0.2 per cent month-over-month in inflation-adjusted terms. Year-over-year, real spending was 2.2 per cent higher. Spending on garments rose 0.7 per cent month-over-month and was up 2.1 per cent year-over-year.

Import volumes have been strong. Import costs continue to rise. In July, the average import cost per square meter of cotton-dominant apparel was up 23 per cent year-over-year, reaching the highest value since 1990.