US apparel spending outpaces wider growth

US consumer spending on clothing rose 3.9% year on year in August, outpacing overall spending growth of 2.6%, according to Cotton Incorporated’s October 2026 update.

Inflation-adjusted spending on garments also increased 1.3% from July, its strongest monthly rise since December 2023. Overall real consumer spending rose 0.6% month on month.

The gains came as the Conference Board’s consumer confidence index fell 6.7 points to 81.9 in September, its lowest reading since 2014. Cotton Incorporated said confidence and pressure on real earnings could raise concerns about whether spending growth can continue.

US apparel prices rose 3.7% year on year in August, while cotton-dominant apparel import costs edged up to $3.77 per square metre equivalent. Those import costs exclude tariffs.

In September, the US economy added an estimated 29,000 jobs, while unemployment rose to 4.2%. Wage growth was 3.0% year on year, below inflation in every month since April.