US consumers spent 11 per cent less on luxury goods in July compared to the same month last year, according to Citi Research’s latest report. The data, gathered from a panel of 10 million credit card-holders, highlights a significant decline in spending on luxury leather goods and ready-to-wear items. This marks a further deterioration in luxury demand, following a 7 per cent drop in June.

Interestingly, while most luxury segments faced a downturn, the watch category experienced unexpected growth. This anomaly suggests a shift in consumer preferences or purchasing behaviour within the luxury market.

The overall decline in luxury spending points to broader economic challenges and changing consumer priorities as the third quarter progresses. Retailers and brands in the luxury sector may need to adapt their strategies to address this shifting landscape and maintain consumer interest.