Sarine’s profit plunged 85% to $953,000 in H1 2023 due to declining midstream demand for its equipment and services amid economic uncertainties spurred by rising interest rates and inflation which have cast a shadow over consumer demand in the United States. As a result, consumer confidence wavered, and disposable income dwindled, leading to a decline in the sale of polished diamonds, the company said.

“The expected rebound in consumer spending in China, following its abandonment of the Zero Covid policy, petered out before it manifested itself. Consumer spending in China, the diamond industry's second most significant market, remains limited,” it noted.

“As interest rates and inflation are likely to stay elevated and the possibility of a recession in the U.S. is still realistic, overall industry conditions are likely to remain challenging for the rest of FY2023,” Sarine said.