Men's underwear index

Men's underwear index

The men's underwear index (MUI) is one of the more surprising economic indexes that gets most attention during economic slumps to detect the beginnings of a recovery.

The premise being that men's underwear are necessity in normal economic times and sales remain stable. During a severe downturn behavior for these goods changes as new purchases are deferred.[1] Hence, Men's purchasing habits for underwear (and that of their spouse on their behalf), is thought to be a good indicator of discretionary spending for consumption at large especially during turnaround periods.

This indicator is noted for being followed by former Federal Reserve Chairman, Alan Greenspan.[2]

References

  1. ^ Mui, Ylan Q. (31 August 2009). "Blue Chip, White Cotton: What Underwear Says About the Economy". The Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2009/08/30/AR2009083002761.html. Retrieved 1 February 2011. 
  2. ^ Brush, Michael. "How your undies track the recession". MSN Money. http://articles.moneycentral.msn.com/Investing/CompanyFocus/how-your-undies-track-the-recession.aspx. Retrieved 1 February 2011. 

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