Sales of jewellery in US are projected to grow by 4.1 per cent to $65.6 billion over the coming year, according to figures from IDEX Online Research.

The predicted growth is down from 2006's figure of seven per cent, and reflects the received wisdom that the flagging economy will impact more heavily upon jewellery and luxury goods sales than on other retail sectors.

However, it is expected that continued inflation of prices will offset the dip in demand in 2007 and thus enable the industry to maintain the decade-long pattern of year-on-year sales growth, which was only interrupted in 2001 when sales were down by 0.8 per cent.

In the long-term the outlook for jewellery is positive, with IDEX analysts predicting that sustained economic growth over the next decade will see the jewellery market regain momentum to post sales growth improvements of between five to six per cent annually.

The move towards higher jewellery prices was borne out this month with China's Shanghai Gold and Jewellery Trade Association announcing a three per cent price rise for platinum jewellery - the fourth such increase over the last year.

Ÿ Adfero Ltd