Art Dealers and Galleries NAICS 459920

Sep 18, 2025 - Galleries Managing Uncertain Outlook for Second Half of 2025

• According to a report in The Art Newspaper, the art market faces mounting challenges amid global economic uncertainty, with notable closures and cancellations, including Tim Blum’s gallery shutdowns in Los Angeles and Tokyo and the Art Dealers Association of America’s New York fair cancellation, highlighting structural vulnerabilities. Despite macro pressures such as geopolitical conflicts, inflation, and shifting consumer behavior, some art businesses are adapting through innovative models. Phillips auction house introduced a revised fee structure to incentivize early commitments, while galleries like Goodman Gallery embrace collaborative, e-commerce-inspired platforms. Although broader economic indicators suggest resilience, concerns persist over debt sustainability and evolving tastes that question traditional art ownership.
• According to recent data from the Bureau of Labor Statistics (BLS), employment by art dealers fell in July 2025, while wages for other miscellaneous retailers, which include art dealers, rose. Employment dropped 6.5% in July 2025 year over year. In the last decade, employment was up 5.6% in the sector, compared to the 13% growth in overall private employment. Average wages at other miscellaneous retailers rose nearly 4% in July 2025 year over year, reaching $23.00 an hour for nonsupervisory employees. In addition, consumer spending levels increased 2.7% in February 2025 compared to a year ago and were up 0.1% from the previous month, according to personal consumption expenditures data from the Bureau of Economic Analysis.

• According to a recent ArtTactic report in ArtNews, overall global auction sales at Christie’s, Sotheby’s, and Phillips were down 6.2% in the first half of 2024 amid economic uncertainty, while the number of lots sold increased 1.3% year over year. Old Masters art and design, decorative arts, and furniture categories grew 35% and 20%, respectively, during the first six months of 2025. Meanwhile, other categories suffered: post-war and contemporary art fell 19%, impressionist and modern art dropped 7.7%, and luxury sales were mostly flat. ArtTactic COO Lindsay Dewar attributed the decline in sales of impressionist and modern art to a more conservative, risk-averse approach to new acquisitions by buyers. Auction sales represent a small piece of the overall art market, but point to a more selective climate for art sales.
• Indicators measuring the collective mood of US consumers showed a downward turn, with consumer confidence and consumer sentiment levels falling. Consumer confidence levels, an indicator of discretionary expenditures, declined in August 2025, month over month, falling by 1.3 points, according to the Consumer Confidence Index. Consumer confidence levels were lower in August, but remained similar to levels in the past three months, according to The Conference Board, which publishes the monthly index. August’s loss can be attributed to consumers under 35 years old, while confidence levels rose for consumers over 55. In addition, the consumer sentiment index from the University of Michigan dropped in September 2025. The index fell to 55.4 in preliminary data for September from 58.2 in August. Year over year, the index was 21% lower than September 2024’s 70.1. Year-ahead inflation expectation results held steady monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.