Monday, 12th December 2005 (3722 views)

The US jewellery industry is poised for a bonanza this Christmas after upbeat figures from RBC indicated that consumers are back in a positive mindset.

The financial group's CASH index hit its second highest reading of the year in December, building on gains made in November.

That means the surge in the popularity of gold jewellery since the summer could be sustained past Christmas, despite recent misgivings that the economy would turn consumers into grinches.

Back in October, retailers were bracing themselves for a frugal festive spending climate as rising oil prices knocked consumer confidence.

But since then the economy has recorded higher growth and oil prices have fallen, making US citizens more determined to spend than ever this yuletide.

"I think shoppers will be in a better frame of mind and may be more inclined to spend," said Bill Cheney, chief economist at John Hancock Financial Services.

"I imagine shoppers are feeling pretty good about the holiday even if there is some background insecurity driven by heating bills."

At 85.5, RBC's index – which is based on data from Ipsos – is still lower than this time last year, when it stood at 93.9.

 

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