Men's underwear index explained

The men's underwear index (MUI) is an economic index that can supposedly detect the beginnings of a recovery during an economic slump. The premise is that men's underwear are a necessity in normal economic times and sales remain stable. During a severe downturn, demand for these goods changes as new purchases are deferred.[1] Hence, men's purchasing habits for underwear (and that of their spouses 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]

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Notes and References

  1. News: Mui. Ylan Q.. Blue Chip, White Cotton: What Underwear Says About the Economy. 1 February 2011. The Washington Post. 31 August 2009.
  2. News: Brush. Michael. How your undies track the recession. 1 February 2011. MSN Money. https://web.archive.org/web/20110302061931/http://articles.moneycentral.msn.com/Investing/CompanyFocus/how-your-undies-track-the-recession.aspx. 2 March 2011. dead.