Luxury spending in the US may increase in the second half of this year amid growing consumer optimism towards the economy, a study by luxury e-commerce platform and retailer Saks shows.

Luxury consumer optimism about the economy grew to 48 per cent, according to the Saks Luxury Pulse survey fielded in January. This represents a 12 per cent increase from the prior survey fielded in October and the highest since the question was first asked last April.

Some 57 per cent of respondents said they feel calm about the economy, up by 7 per cent compared to the prior survey.

Regarding their personal finances, 70 per cent of luxury consumers feel both optimistic and calm, up by 6 and 3 per cent, respectively, from the previous report.

The rise in optimism, however, is not yet translating to plans to spend on luxury and does not change the consumers’ interest in promotions, the company noted.

The study found that 57 per cent of consumers plan to spend the same or more on luxury in the next three months, down from 62 per cent in the year-ago period. 

The survey added customers are likely to engage in activities that will enhance an individualized shopping experience.

“Luxury is a sentiment-based business, so we’re pleased to see that attitudes toward the economy are improving, particularly as consumers have grown used to the dynamic macro environment,” said Marc Metrick, CEO of Saks.

“With that, we anticipate these positive sentiments will translate to an improvement in luxury spending in the back half of 2024.”

The Saks Luxury Pulse is a quarterly online survey of luxury consumers’ attitudes toward shopping, spending and fashion trends. The January edition was based on responses from 3211 US-based consumers over the age of 18.

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