Americans might be fretting about the job market and inflation, but it’s not stopping them from splurging on vacations.
Nearly half of consumers in August were planning a trip in the next six months — the highest share all year, according to Conference Board survey data Tuesday. And about one in five of them are going abroad, a record share in the data going back to the 1970s.
Demand for international travel has largely recovered as Americans take advantage of reopening borders, a strong dollar and lower airfares in recent months. That’s prompting airlines to boost service and expand routes, and has helped drive a measure of spending abroad by US travelers to an all-time high earlier this year.
The vacation plans reflect Americans’ incessant demand for experiences in a post-pandemic world. Despite an overall easing in consumer confidence in August as inflation and interest-rate expectations rose, many households are still buoyed by the healthy labor market and excess savings.
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“Consumers have shifted their spending toward experiences, which are easier to finance with credit cards,” Bloomberg Economics’ Eliza Winger wrote in a note Tuesday. “We expect consumer spending to run out of steam ahead, reflecting deflating confidence about future job availability and incomes.”
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More Americans plan vacations, even as they sour on the economy
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