What: The fashion industry has cheered this year as consumers have repeatedly defied economists’ predictions, and while a global recession may still be on the table, there are still reasons for hope.

Why it is important: Easing inflation is leading to an uptick in consumer sentiment regarding the economy.

Consumers don’t seem to share economists’ and fashion executives’ doom-and-gloom mindset, which was demonstrated through the University of Michigan’s index of US consumer sentiment, hitting 59.7 in December, below a reading of 70.6 a year ago, but up from November and above economists’ average forecast.

And a Wednesday survey from the Confederation of British Industry reported an 11-point uptick in consumer demand in December, up from a 19-point drop in November. Forecasters had been projecting a 20-plus-point decline this month. As well, UK clothing sales volumes rose 2.1% last month, while in the US, sales for stores specialising in clothing and clothing accessories dipped a relatively mild 0.2%.

Hopes for 2023 improve