According to recent data released by the U.S. Department of Labor, the U.S. clothing retail showed continued improvement in December 2023, while household consumption showed a marked decline.

Retail sales grow, household consumption falls

The U.S. Consumer Price Index (CPI) rose 3.4% compared to December 2023, the highest rise in the past three months. The ratio growth rate rose to 0.3%, up from 0.1% in November, suggesting that market expectations for the first rate reduction in March this year may be under pressure. Removing food and energy’s core annual inflation rate from 3.9%, which has fallen to below 4% for the first time since May 2021.

From the specific retail sector, the U.S. Department of Commerce data showed that in December 2023, the U.S. retail industry grew by 0.6%, compared with the growth rate rebounded to 5.6%. The consumption ratio for furniture and home decoration dropped by 3.4 percentage points to -1%, while the consumption of non-durable goods such as online retail and clothing stores continued to improve, up by 1.5% compared.

Stable decline in inventory and sales ratio

In terms of inventory and sales, the U.S. clothing stores’ inventory/sales ratio in November 2023 was 2.34 per cent, the ratio fell 1.7 per cent. The inventory/sales ratio for furniture and home and electronics stores was 1.5 per cent, the ratio fell 2.6 per cent. This suggests that sales growth in the U.S. manufacturing, wholesale and retail sectors is gradually rising.

Imports decline, China’s share stable

In terms of imports, the total amount of textile clothing imported from China in the period 1-11-2023 was $291.5 billion, representing 25.8% of the total imports of textile clothing from the United States, down 26.2% compared to the same period.

Retail business performance

In the retail sector, brands such as Abercrombie & Fitch and Urban Outfitters have both released positive performance reports.Abercrombie & Fitch expects its womens garment business to the fastest growth in history, while the Urban Outfitters Group grew overall sales by 10% over the two months at the end of December 2023.

Overall, despite facing inflation and other economic challenges, the U.S. clothing retail showed a continued growth trend in December 2023, while household consumption declined. At the same time, the decline in U.S. imports from countries such as China narrowed, showing some stability in the market. Retailers performance also showed a strong resilience in consumer spending in specific areas. With the continuous changes in the market and economic environment, these trends deserve further attention and analysis.