denim skirt
The hemline index says that as the economy gets worse, skirts get longer.
  • Economists have tracked all sorts of buying behavior over the years that indicates the health of the economy. 
  • For example, one measure called the lipstick index says that people buy more little luxuries, like lipstick, when the economy is worse. 
  • These measures aren't foolproof and some are even downright wacky. But they could be a fun way to gauge which direction the economy is heading. 
Lipstick index
Woman putting on red lipstick