After a summer of robust consumer spending, America’s bars, hotels and restaurants say the era of post-pandemic splurging by U.S. consumers has likely drawn to a close.
The prediction came as part of the regular “Beige Book” economic snapshot from the Federal Reserve released Wednesday. Several of the Fed’s 12 regional districts reported peaking or even slowing tourism activity — a sign that U.S. consumer spending, which accounts for about two-thirds of U.S. economic output, could be shifting in the coming months.
“Consumer spending on tourism was stronger than expected, surging during what most contacts considered the last stage of pent-up demand for leisure travel from the pandemic era,” the report said.
But that strength in leisure spending began to level off toward the end of August, the latest Beige Book shows. That’s partly because students went back to school and summer vacations wrapped up. Still, leisure spending varied by region, with some reporting a noticeable slowing and others saying it is holding steady.