US Luxury Credit Card Spending Drops 6 Percent in September
Citi data shows US luxury spending fell 6 percent year-over-year in September, marking a third straight monthly decline ahead of the November midterm elections.
US credit card spending on luxury brands fell 6 percent year-over-year in September, according to data from Citi. This represents the third consecutive monthly decline in the sector. The downturn coincides with the lead-up to the November 3 midterm elections, a period often marked by consumer caution due to political uncertainty.
Demand has weakened most significantly for luxury jewelry and watches. In contrast, ready-to-wear items and leather goods showed sequential improvement during September. While wealth growth among affluent consumers and AI millionaires has provided some support for the highest end of the market, overall momentum remains negative.
Analysts from Morgan Stanley suggest this trend limits the ability of luxury brands to return to growth after two years of contraction. Major luxury groups with heavy US exposure, including LVMH, Kering, Tapestry, and Ferragamo, are expected to report weaker demand during the upcoming earnings season. LVMH is scheduled to report third-quarter sales on October 12.
