U.S. jewelry and watch sales across all channels fell 1.9 percent year on year to $4.55 billion in January, according to preliminary figures. Data revealed that jewelry sales fell 1.6 percent to $4 billion, while sales of watches contracted 4.8 percent to $532 million during the month. In addition, January became the fourth consecutive month with sales declines in the sector.
As expected, sales totals were revised slightly lower for December. In all, combined jewelry and watch sales growth in 2014 was narrowed to just a 1 percent year on year gain at $78.595 billion with jewelry sales totaling $69.164 billion and watch revenue reaching $9.436 billion.
Lindsey Piegza, the chief economist at Sterne Agee, noted that weaker inflation in January has helped boost real wages. "However, weaker price pressures have also begun to weigh on consumer's decisions to spend. After months of robust spending in October and November, by December consumers began squirreling away some of that cost savings rather than ramping up spending for another month," she wrote in a note a clients. So, as consumer consumption on staple goods remains robust, shoppers are also making a point to save their hard earned cash this year.
