Hemlines and the Economy

Proof that you can turn anything into an economic indicator: Are falling headlines harbingers of an economic slowdown?  A writer at CNN seems to see a connection:

Layering. The economic downturn. Traction from an entrenched parents' backlash against highly sexualized looks for their daughters. Oh, and fashion's do-or-die need to throw something new at the gigantic but fickle teen/tween market as quickly as you can say "MySpace" or "Facebook."

I like the result: too-revealing camisoles and tank tops now paired with a covering hoodie or graphic T-shirt. Dresses topped by '50s-ish cardigans or shrugs. Vintage '70s-ish pieces picked up cheaply at thrift shops.

Also, layered items are interchangeable and can be put together in different ways, so I think (hope) we're saving money.

I'm not convinced that layering is saving anyone any money (doesn't layering just mean that you need to buy twice as many clothes in order to form a complete outfit?), but is it true that a trend to more modest clothing is connected to the economy?  Are you dressing more conservatively?