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. 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.
- ^Mui, Ylan Q. (31 August 2009). “Blue Chip, White Cotton: What Underwear Says About the Economy”. The Washington Post. Retrieved 1 February 2011.
- ^Brush, Michael. “How your undies track the recession”. MSN Money. Archived from the original on 2 March 2011. Retrieved 1 February 2011.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.