What All the Single Ladies (and Men) Say About the Economy

The pandemic continues to cause aftershocks in the U.S. economy and signet Jewelers shared an unexpected one this week: fewer engagement rings are being sold because singles, who were stuck at home during lockdowns, failed to meet their potential fiancés in 2020. This engagement ring trend represents the overall economy: the bridal jewelry business is suffering from the delayed effects of the pandemic, rapid inflation, and increasingly nervous consumers. Inflation rates have climbed about 15 percent over the past three years while wages are falling behind, thus making it difficult for consumers to buy big-ticket items like fancy diamond rings and bespoke wedding dresses. The Federal Reserve has been raising interest rates to cool the economy and fight inflation; however, it has increased the possibility that it might lead to a recession. The wedding industry is showing a split, as higher-earners are spending more, while lower-income families are beginning to feel the pinch of inflation. While LVMH, the luxury retail group that owns jewelers including Tiffany, has reported continued growth in early 2023, including solid growth in jewelry, mass-market brands like Kay Jewelers and Zales are seeing softening as shoppers may be starting to pull back. Finally, Signet is hoping wedding-ring demand will recover; however, Shane McMurray, founder of the Wedding Report, is skeptical of a big gap year in engagements, while Lyman Stone, director of research at Demographic Intelligence, agreed that the current slowdown in weddings might reflect a return to previous trends rather than a one-off weakening.

Author: OpenAI