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.