What Fall’s Fashion Trends Say about the Economy

Fashion magazines and trendy shoppers aren't the only ones who pay attention to the ensembles designers send down the runway. Economists also look to tastemakers to forecast consumer consciousness and trends. For instance, the lengths of women's hemlines have been used to help track dips and rises in the stock market since the late 1920s. Of course, fashion and the economy don't have a cause-and-effect relationship, but what's in style is an excellent barometer for shoppers' feelings about their financial security. Fall's hottest trends offer hints to what the rest of the year may look like not only for our wardrobes but our wallets too. Check out the following fashion indicators and see if you agree.

Military-Inspired Fashions

One of fall's hottest trends include earthy colors, utilitarian jackets, and crisp, structured styles. This season's hottest shoes and boots are downright masculine with rustic laces, chunky heels, and plenty of tough-chic hardware that seem to scream these boots are made for marching! So what does all this warrior imagery say about our social consciousness? Perhaps we need our clothes to be as tough as we are as we weather shifts in the job market. We're not interested in anything dainty or high maintenance. Instead, we want fashions that will not only withstand the colder season but the cooler economic climate as well.


Lower Hemlines

The hemline indicator states that skirt lengths represent consumer confidence and levels of optimism; the higher the hemline, the more free the spending and the lower the skirt, the more modest we are. In times of economic booms, micro-minis showed up everywhere. This year, longer dresses with classic shapes are synonymous with fall style. As a result, this year's hottest little black dresses aren't so little! This new-found modesty and conservativeness might point to the fact that shoppers are paying closer attention to their spending, causing them to invest in pieces that are appropriate for multiple occasions. A dress with a longer hemline can take you from the office to a party without a wardrobe change, meaning you're getting more bang for your buck.


Red Hot Lips

Surprisingly, cosmetic companies often see a rise in sales during slower economies. It's called the lipstick indicator and the theory states that people turn to inexpensive luxuries, like a great inexpensive lipstick, during times of financial stress to help them feel better. In 2001, for instance, the chairman of cosmetic company Estée Lauder noticed record lipstick sales shortly after September 11, causing him to see a correlation. We must be hankering for small splurges as we're seeing matte lips in rich hues everywhere this season.

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