U.S. Jewelry Sales Fall Slightly in July

(IDEX Online) - Sales of fine jewelry and fine watches declined by 0.8 percent in the U.S. market in July compared to the same month a year ago, as seen in the graph below. Revised figures also show that the situation is less gloomy than previously thought with the declines since the beginning of the year less steep than previously thought (the Department of Commerce periodically revises its numbers). 

Outlook

It's hard to say at this point what sort of year 2019 is going to turn out to be. One of the biggest factors that could affect jewelry sales is the imposition of new sales tariffs as the U.S. and China go head-to-head in the trade wars. 

"It is too early to assess the impact of the new tariffs that took effect at the beginning of this month, but they do present downside risks to household spending," said Jack Kleinhenz, NRF chief economist. 

These 15 percent tariffs on a wide range of consumer goods from China took effect September 1 and are scheduled to be expanded to additional goods on December 15, covering a total of about $300 billion in imports. In addition, 25 percent tariffs already in effect on $250 billion worth of imports are set to increase to 30 percent on October 15. Diamonds, gems and jewelry imports were included in the September 1 tariffs, with a 10-percent tariff affecting some $13 billion worth of goods. 

How this will affect retail jewelry sales remains to be seen. 

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