Men's Underwear Index

DEFINITION of 'Men's Underwear Index'

An unconventional measure of how well the economy is doing based on sales of men's underwear. The reasoning behind this measure assumes that men view underwear as a necessity (not a luxury item), so sales of this product should be steady - except during severe economic downturns, when men will wait longer to buy new underwear. The notable decrease in underwear sales is said to reflect the poor overall state of the economy. Conversely, when underwear sales pick up, the economy is considered to be improving.

BREAKING DOWN 'Men's Underwear Index'

Former Fed Chairman Alan Greenspan subscribes to this theory, but its critics say it may not be accurate because women purchase a significant amount of underwear for men. Other critics argue that men do not buy new underwear until it's threadbare, regardless of how well the economy is doing.

RELATED TERMS
  1. Barometer

    A compilation of market and economic data that represents a general ...
  2. Mancession

    An economic instance in which the unemployment rate is substantially ...
  3. Davos Man/Davos Woman

    Davos man/Davos woman refers to the members of the World Economic ...
  4. Economy

    Economy is the large set of inter-related economic production ...
  5. Luxury Item

    An item that is not necessary for living, but is deemed as highly-desired ...
  6. Pale Recession

    A phrase used in May 2008 by former Federal Reserve Board Chairman ...
Related Articles
  1. Budgeting

    Manpacks Review: Is It Worth It?

    Find out if Manpacks, the fast-growing e-commerce subscription service for men's grooming products and underwear, is worth all the hype in this review.
  2. Savings

    Giving Financial Thanks In Thanksgiving Day

    A new poll finds in what financial tools Americans are most thankful for -- both sexes say the product they value most is the venerable savings accounts.
  3. Retirement

    Retirement Costs: Men Vs Women

    Understanding certain differences between the sexes can help couples and singles make better financial plans for retirement.
  4. Professionals

    What Accounts for One-Third of the Wage Gap (WMT)

    Women who work full time still make less than men who have the same qualifications. One third of the pay gap may be due to gender bias and discrimination.
  5. Retirement

    5 Reasons to Leave Retirement Planning to Your Wife

    Wives live longer than their husbands, so their retirement stakes are higher. Luckily, certain qualities make women especially good at long-term planning
  6. Credit & Loans

    The Credit Battle of the Sexes: Game On!

    A recent study says men have slightly better credit scores than women. Why is that, and how might it be changed?
  7. Personal Finance

    3 Common Financial Mistakes for Women to Avoid

    Find out why of more than 4,000 Americans, women are more likely than men to have no savings or investments.
  8. Fundamental Analysis

    The Unique Ways Women Approach Finance

    Understanding gender differences and how they are changing is fundamental to understanding the investing world.
  9. Your Clients

    These Investors Needs More Advisor Attention

    Women live longer than men and their post-retirement finances are in jeopardy. A new report by the National Institute for Retirement Security shows why.
  10. Insurance

    Insurance Myths Involve Houses, Cars & Big Crashes

    Any confusion over what to buy or how to use a product can end up being costly, but when it comes to insurance, misunderstandings can cost thousands.
RELATED FAQS
  1. What are some examples of businesses that use market segmentation?

    Find out what types of businesses use market segmentation and how this strategy helps companies market their products more ... Read Answer >>
  2. What components are factored in determining net sales?

    Understand the key components that factor into determining a company's net sales. Learn about the underlying drivers of those ... Read Answer >>
  3. What are some advantages of a market economy over other types of economies?

    Learn what a market economy is, the main assumption behind a market economy and some important advantages a market economy ... Read Answer >>
  4. Why is the U.S. stock market doing well despite the recent U.S. economic downturn?

    The U.S. economy is one of the largest and most important economies of the world. With the continual growth of its GDP, the ... Read Answer >>
  5. How do researchers ensure that a simple random sample is an accurate representation ...

    Learn which methods researchers employ to ensure that a simple random sample best approximates the larger population being ... Read Answer >>
  6. What is the point of calculating gross sales?

    Learn how doing simple gross sales and gross profit calculations can serve to help change a company's profit ratio and overall ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center