The US consumer price index (CPI) for garments increased by 1.1 per cent in October, marking a rebound after months of price declines, according to Cotton Incorporated. Clothing prices now stand 7.6 per cent above 2019 levels, reflecting sustained inflation following initial Covid-19 price drops.

While import prices for cotton-based apparel have stabilized at around $3.70 per square meter equivalent (SME), they remain higher than pre-pandemic levels, which averaged $3.45/SME in 2019. This stability may impact future retail prices as the apparel sector navigates a changing economy, Cotton Incorporated noted.

Consumer confidence also improved, with the Conference Board’s Index reaching 108.7 in October, its highest since January 2024. Consumer spending overall rose 0.4 per cent month-over-month and 3.1 per cent year-over-year in September. Apparel spending mirrored this trend, increasing 0.4 per cent month-over-month and 1.7 per cent year-over-year, though it has slowed since July.

Global growth projections from the International Monetary Fund (IMF) remain steady at 3.2 per cent for 2024 and 2025, with the US economy outperforming at forecasted rates of 2.8 per cent and 2.2 per cent respectively. However, job growth in October lagged with only 12,000 new positions added, partly due to Hurricane Helene and labor strikes.