What do skinny jeans, peplum tops, and Timothée Chalamet’s now-iconic skinny scarf all have in common?
If everything on social media is to be believed (side note: it’s not), they’re not just fashion choices—they’re recession indicators.
People in various corners of the internet are convinced that trends in hair dye, hemlines, and the state of your fingernails are more than just style statements—they’re subtle signals of the economy’s imminent nosedive.
But can the shade of your hair or the cut of your jeans really say something about the state of the global economy? Or is this just another case of the internet doing what it does best: overanalysing, overposting, and creating something out of nothing?
To make sense of it all, Helen Smith from The Briefing sat down with Amy Campbell, Features Editor at Esquire Australia, to explore which style shifts might actually hint at economic downturns—and which are simply part of fashion’s ever-turning wheel.
Listen to the full episode of The Briefing here
So is the state of our Fashion choices really an accurate economic barometer?
It turns out there’s some truth behind the trend.
Throughout all of history, fashion has responded to broader economic conditions.
Think of the “lipstick index” – a term coined in the early 2000s that noted how lipstick sales tended to rise during economic slumps. This is because consumers looked for affordable indulgences, because who doesn’t love a half-price lippy?!
According to the Australian Bureau of Statistics, spending on clothing, footwear, and accessories dropped 2.5% in April last year. And that sluggish recovery is still dragging into 2025. It’s not just that people are shopping less – it’s about how people are shopping.
There’s more focus on timeless, versatile pieces and less on flashy, fast-moving trends.
In short, frugality is fashionable again.
Still, it’s important not to overstate the case. While some of these changes are driven by economic caution, others are just part of the fashion cycle, doing the thing it’s always done.
So whether you’re rocking muted tones by necessity or simply embracing minimalism for the aesthetic, don’t panic. Your skinny scarf, blonde regrowth and cheap French tips don’t necessarily mean a huge global crash is coming… it might just mean you’re too lazy (and busy) to spend endless hours in the salon chair.
And honestly? That’s more than okay!
Article by Alexandria Funnell
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