If you thought the price of eggs was your biggest financial worry, think again.
In reality, there are also hidden economic indicators in your own wardrobe.
The economy is in flux–tariffs come and go, the stock market swings unpredictably, and whispers of a looming recession grow louder. While economists analyze inflation, interest rates, and unemployment, fashion and beauty trends have quietly emerged as telling economic indicators. However, these concerns are not that recent.
Long before headlines sound the alarm, shifts in consumer behavior, like a sudden obsession with office wear or a surge in lipstick sales, hint at broader financial anxieties. So, what are these subtle style signals, and what do they really mean? Let’s decode them.
Here are some industry-wide patterns in fashion and beauty that can be signs of challenging economic times:
- The Rise of Corporate Core
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As noted in the Fall/Winter 2025-26 runway review, the corporate fashion style is on the rise (I knew it must mean something!). Corporate fashion has been around long before most of gen-z was born, but now it’s gaining more traction. To illustrate this point, let’s look at some numbers.
@databutmakeitfashion, (an account on Instagram that tracks trends in the fashion industry) points out that the popularity of “office core” in online searches recently increased by more than 39%. Moreover, if we look at the analytics on our trusted inspo platform– aka Pinterest– “stylish work attire” has had a monthly increase of 400%, and “spring work outfit” has increased by 300%. Now, you might be wondering, how could this possibly relate to broader economic trends? Well, let’s ask ourselves. Why are people now more interested in workwear? Furthermore, what is the point of romanticizing it? Don’t get me wrong, I love a good pantsuit, but not many people are looking to make a fashion statement out of their work clothes as much as they just want to look appropriate.
There are two ways this translates to broader trends. First, when times are tough, people cut back on discretionary expenses (i.e., non-necessities) and prioritize buying things that are versatile, durable, and timeless. Ever heard of business casual? It’s a trend that’s surging even as brands like PrettyLittleThing make headlines with bold, unexpected rebrands. The appeal? These office-friendly styles pull double duty, working just as well outside the 9-to-5, which means fewer wardrobe expenses overall. When people don’t have much left to spend, this is an easy way to cut corners.
A less obvious but equally compelling perspective is the phenomenon of romanticizing work itself. In tough economic climates, job security becomes non-negotiable – it’s often less about passion and more about survival. Since quitting isn’t an option, people are remodeling their mundane work routines through carefully curated office attire. My take is that romanticizing workwear can be a sort of escapism in light of these struggles. Downturns aren’t characterized as happy times, but that doesn’t mean one can’t craft small moments of joy for themselves.
- Swings Towards Minimalism
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Remember when quiet luxury was at its peak? I do. It seemed like everyone was going crazy for the clean, put-together look rather than wearing color and statement pieces. I remember my Instagram feed was all brown, navy, black, and white outfits for weeks. Well, now it’s back. Courtesy of @databutmakeitfashion, the minimalist aesthetic is up +38%. Do you know what’s also trending? The maxi skirt.
Muted colors and maxi skirts are part of the minimalistic aesthetic. Building on the idea of versatility from the corporate section, simple colors are super easy to wear for any occasion. And of course, maxi skirts are in between the line of formal and casual. But also think about it: how many times have you worn the bright pink top in your closet? Probably not often.
This aesthetic is not just practical; it has an air of sophistication to it. In these times, who wouldn’t want some of that?
- Lipstick Index
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This one you’ve probably heard before. There’s an intriguing phenomenon in consumer behavior where beauty purchases, particularly lip products, tend to surge when economic uncertainty looms. The reasoning goes that when people hesitate to splurge on major fashion investments, they still seek small, uplifting treats that deliver instant gratification. A swipe of bold color or a hydrating balm becomes an affordable luxury when bigger indulgences feel irresponsible. While concrete data hasn’t yet confirmed this shift, the pattern has emerged often enough in past downturns that watchers are keeping a close eye on makeup counters. If the trend holds, we may soon see a quiet boom in lip products as shoppers navigate these financially cautious times. After all, both in the makeup and skincare spheres, lip products are hot right now.
Final thoughts
Whether these indicators are sound or not is debatable, but I must say that sometimes they are pretty spot on. Certainly, we’ll have to wait and see how things play out in the next couple of weeks. One thing is clear, though. In 2024, very few industry leaders were optimistic about the outlook of the global economy and the fashion industry in 2025. Approximately 98% of clothes in the U.S. come from other countries, and if it’s going to be harder for people to afford basic goods, their predictions about the economy and the state of the fashion industry itself are not far off.
So, everyone, if you want to upgrade your closet this season but the economy isn’t really on your side, maybe use this time to keep your hard-earned dollars and learn how to give a new life to the clothes you already own :)