Fashion pulse: USA - August 2026

Consumer prices (August)

US headline inflation held at 3.4 percent year-on-year in August 2026, the same rate as in July, according to the Bureau of Labor Statistics (BLS). Energy prices were 16.3 percent higher YoY, while core prices excluding food and energy rose 2.4 percent. On a seasonally adjusted basis, consumer prices rose 0.4 percent from July.

Apparel prices rose 3.6 percent YoY, down from 3.9 percent in July but above headline inflation for a seventh consecutive month, according to BLS. On a seasonally adjusted basis, the apparel index was unchanged from July. Men's and boys' apparel rose 3.7 percent, women's and girls' apparel 3.5 percent and footwear 3.6 percent, while infants' and toddlers' apparel fell 3.4 percent.

Jewelry and watch prices rose 8.2 percent YoY, down from 14.4 percent in July, against a high comparison base after a 4.4 percent monthly jump in August 2025. Further up the supply chain, producer prices for apparel manufacturing rose 3.6 percent YoY and for textile mill products 5.1 percent, according to preliminary BLS data.

Retail sales (August, advance)

Sales at clothing and clothing accessories stores rose 0.7 percent from July to 26.50 billion dollars in August, according to advance estimates from the Census Bureau, as updated in its annual revision on 28 September. Compared with August 2025, clothing store sales were 4.1 percent higher in current dollars. Using the 3.6 percent rise in apparel prices as an approximate deflator, real growth was roughly 0.5 percent.

Total retail and food services sales rose 1.1 percent from July and 5.4 percent YoY, according to the Census Bureau. Nonstore retailers, which include online sellers, grew 7.9 percent YoY, while department store sales were 1.8 percent higher than a year earlier.

Macro context (August)

The Conference Board's consumer confidence index fell to a revised 88.6 in August from 90.2 in July. The University of Michigan's consumer sentiment index also fell, to 51.7 from 55.2, so both surveys pointed lower in the same month.

The unemployment rate held at 4.1 percent in August, according to BLS. Employment at clothing, accessories, shoe and jewelry retailers stood at 1.15 million on preliminary BLS data, while apparel manufacturing employed 72,000 people, down from 78,700 a year earlier.

Monetary policy and currency (August)

The Federal Reserve left its target range for the federal funds rate unchanged at 3.50 to 3.75 percent in August, with the effective rate averaging 3.63 percent over the month. The euro rose 1.54 percent against the dollar in August, to a monthly mean of 1.1593 dollars from 1.1417 dollars in July, according to the European Central Bank (ECB). Compared with August 2025, the euro was 0.33 percent weaker against the dollar.

The bottom line

US apparel prices rose 3.6 percent YoY in August, ahead of headline inflation of 3.4 percent for a seventh consecutive month. Clothing store sales grew 4.1 percent in current dollars, slower than total retail and online sellers, and roughly 0.5 percent once higher apparel prices are taken into account. Both major consumer surveys weakened in August.

Note: this article combines the most recent official data available at the time of writing. Reporting lags differ by indicator and country, so not all figures refer to the same month. Each data point is labelled with its reference period.