US consumers are done splurging, Fed report suggests

After a summer of robust spending, consumer splurging is slowing down according to the latest Fed Beige Book report. This includes "revenge travel."
Some Fed districts noted tourism activity has peaked or is slowing. Hospitality businesses are cautiously optimistic about modest growth.
Consumers are trading down, choosing cheaper travel and dining options over premium experiences. This indicates slowing leisure spending.
Economists predict a "hangover effect" on spending in Q4 as factors like student loans and dwindling savings hit consumers.
It's unclear how much consumers will pull back spending. The economy's resilience could lead to more Fed rate hikes if it stays red-hot.

cnn.com

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10/1/2023

Revenge Travel Slows as Costs Rise and Economic Uncertainty Grows

The era of revenge travel may be coming to an end as travel intentions decline, particularly in Europe, due to rising travel costs and economic factors, while even in Asia-Pacific, pent-up demand for travel is expected to fade and travel preferences may shift to domestic destinations in China.