Citi reports US luxury spending fell 6% in September on weak demand

Citi revealed that luxury spending in the United States declined by 6% in September compared to the same month last year, marking the largest decrease of the third quarter and the first negative quarter of 2026, based on credit card data from the bank. This decline followed drops of 4% in July and August, leading to a 5% reduction for the entire third quarter after gains of 5% and 3% in the first and second quarters, respectively.

The downward trend was influenced by ongoing geopolitical concerns and a more challenging year-over-year comparison by approximately one percentage point. The two-year cumulative spend trend worsened to a negative 6% from a negative 5% in August. Leather goods and ready-to-wear segments showed improvement, while jewelry and watches experienced a sharp decline, partly due to the anniversary of tariff-related demand pull-forward.

In September, average transaction values turned negative in the single-digit range, and the number of transacting customers declined by 5% year-over-year. Consumer confidence dropped during the month, with both the Conference Board and University of Michigan surveys indicating weaker business and labor market conditions as well as persistent inflation worries.

Citi believes that US luxury demand may normalize heading into the upcoming reporting season, suggesting that higher-end consumers will remain relatively resilient, bolstered primarily by wealth effects from equity markets. The data reflects a portion of Citi's credit card transactions from over 10 million US cardholders. The analysis was AI-generated with editorial review.