US apparel spending rose 3.5 per cent year-on-year in May, ahead of 2.1 per cent growth in total consumer spending.
Retail clothing prices were 4.8 per cent higher, keeping margin pressure in view for brands, importers and sourcing teams.
Cotton-dominant apparel sourcing costs fell 3.5 per cent year-on-year but remained 6.8 per cent above their 2019 average.
The update said overall consumer spending grew 0.2 per cent in May and was up 2.1 per cent year-on-year (YoY). Retail clothing prices rose 0.2 per cent from April and were 4.8 per cent higher year-on-year, the strongest annual increase since the post-pandemic volatility, according to the update. In recent decades, retail apparel prices have generally been flat or declining.
The Executive Cotton Update for July 2026, published by Cotton Incorporated, said a memorandum of understanding signed around the middle of June between the US and Iran facilitated greater trade flows out of the Persian Gulf through the Strait of Hormuz. Brent crude, which averaged $95 per barrel in the first half of June, was close to $70 per barrel at the time of the update, down 16 per cent relative to early June.
The same update said the US national average gasoline price declined from a recent peak of $4.35 per gallon around mid-May to about $3.65 per gallon, also down 16 per cent. However, May inflation data showed the overall Consumer Price Index up 4.2 per cent, while wage growth was near 3.5 per cent, adding pressure to consumer finances.
For sourcing teams, cotton-dominant apparel costs remain a key watchpoint.
The update said the average cost per square metre equivalent of cotton-dominant apparel was $3.68 in May, seasonally adjusted and excluding tariffs. That was 3.5 per cent lowerYoY, but still 6.8 per cent above the 2019 average.
Fibre2Fashion News Desk
