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.
This indicator is noted for being followed by former Federal Reserve Chairman Alan Greenspan.
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