RAPAPORT... U.S. demand for diamond jewelry grew in 2015 supported by a sustained economic recovery and an improved labor market, according to a De Beers report.
U.S. sales advanced 5 percent to $39 billion, the research publish Wednesday showed. Growth in the U.S. market, however, failed to lift the global industry which contracted 2 percent because of sluggishness in emerging-market economies and the strength of the U.S. dollar.
Global diamond jewelry demand fell to $79 billion, off its record high of $81 billion in 2014. At constant exchange rates, demand advanced 2 percent.
“Encouragingly, the U.S. continues to grow the strongest, while China continues to grow from an increasingly large base,” said Philippe Mellier, De Beers chief executive officer.
Chinese diamond jewelry demand, including from purchases abroad, rose 1 percent, or 3 percent when measured in terms of yuan. Other major markets including India, Japan, and the Gulf, registered declines in sales. Weakness in emerging markets such as Russia and Brazil also weighed on global growth.
De Beers expects the trend to continue in 2016, with the U.S. remaining the engine of growth for the industry while emerging markets remain sluggish. Despite a positive holiday selling season in the U.S. in 2015, De Beers stressed it “continues to take a cautious approach” to global demand in light of the fragile macroeconomic environment.
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