Business

United States: The Luxury Sector Faces Consumer Caution

By Eva Morletto07 octobre 2026

U.S. credit card spending on luxury goods fell 6% in September 2026, following two months of 4% declines. This is a worrying sign for a market that remains central to the luxury industry.

Fifth Avenue in New York, a symbol of American consumerism (Shutterstock)

With just a few weeks to go before the midterm elections, the world’s largest luxury market is failing to reassure the luxury industry. Citigroup, one of the largest U.S. banking groups, is sounding the alarm after analyzing several million transactions. This marks the third consecutive month of decline, following a 4% drop in July and another 4% drop in August.

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The United States Is No Longer Acting As A Buffer

This figure is concerning, given that the United States has, until now, been one of the main buffers against the global slowdown in the luxury sector. Faced with a less dynamic China and a geopolitical context that has been tense for several months, luxury brands had been counting on the wealth accumulated by the wealthiest American consumers—thanks in particular to the strong performance of financial markets and the boom in industries related to artificial intelligence. However, Wall Street’s momentum does not reflect the entire country, which is generally much more cautious.

This decline does not necessarily indicate a sudden decline in Americans’ wealth but rather reveals a shift in behavior. As the November 3 midterm elections approach, political uncertainty is compounding economic fears. U.S. bond yields reached their highest levels since 2002 in early October, and the average rate on a 30-year mortgage rose to 7.28%.

Market Resilience Varies By Segment

Citigroup, for example, observed an improvement in leather goods and ready-to-wear apparel sales in September. In contrast, there appears to have been a further decline in sales of high-end watches and jewelry.

The major risk remains that of accelerated market polarization. Ultra-high-net-worth clients continue to buy, while aspirational customers—who are more exposed to economic uncertainties—are beginning to curb and space out their spending.

For groups with a strong presence in the United States, such as LVMH, Tapestry, and Ferragamo, the strategy of raising prices has also reached its limits. The more luxury houses raise their prices to protect their margins, the more they limit the number of people able to enter their world.

Key Points:

- The market is becoming more polarized: ultra-high-net-worth consumers continue to spend, while aspirational customers are becoming more cautious, particularly in the face of rising prices.

- U.S. luxury spending has declined for the third consecutive month, with a 6% drop in September, following declines of 4% in July and August.

- The slowdown is affecting the high-end watch industry and jewelry the most, while leather goods and ready-to-wear are showing signs of improvement.

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