Year-to-year teen spending on fashion in the US declined nearly 20% in spring 2008, according to a recent Piper Jaffray survey.
Though fashion accounted for nearly 41% of surveyed teens' budgets, Piper Jaffray noted this was low compared with previous years.
"We're currently in the 'transition phase' of the fashion cycle
and believe that we have not yet hit bottom," said Jeff Klinefelter,
senior retail research analyst at Piper Jaffray.
"The current economic challenges are impacting consumers at all income levels and ages, indicated by the historic low level of average planned spending in the fashion category this spring," Klinefelter explained.
In addition, the parents surveyed indicated they were spending less on fashion for their teens. Parents' annual spending on teen apparel was down to $833, compared with $1,487 in the previous year's survey.