Millions of Americans kicked off summer 2024 with travel, barbecues, and pool days, indicating a strong start to the season for leisure businesses. The Memorial Day weekend saw record numbers of travelers, including a significant increase in driving compared to last year. Royal Caribbean also reported strong earnings, with executives optimistic about the year ahead. This positive momentum is expected to provide a significant economic boost to cities with a large tourism industry.
Analysts at Bank of America are also predicting a solid summer for leisure spending based on card data, consumer surveys, and other resources. While spending may be slightly lower than last year, it is still expected to be robust. The bank’s survey found that a majority of Americans are planning to travel this summer, with younger generations more likely to take international trips for longer periods and higher spending. Domestic spendings such as restaurants have seen an increase in California and Florida compared to the same time last year.
However, there are concerns about rising household debt and delinquencies among Americans, along with high inflation rates and interest rates. While a recession is not expected this year, there are predictions of a slowdown in the economy over the next 12 months, especially with weaker employment figures. Economists warn that this year’s summer spending spree may be the last before economic conditions deteriorate.
In other news, Kabosu, the Shiba Inu dog who inspired countless “doge” memes, has passed away at the age of 18. The dog became an internet sensation in 2010, leading to the creation of dog-themed cryptocurrencies such as dogecoin. Kabosu’s owner announced the news in a blog post, remembering her as the happiest dog in the world. The popularity of “doge” memes continues to endure as a tribute to Kabosu’s legacy.
Looking ahead, the upcoming week includes earnings reports from companies such as Salesforce, HP, Costco, and Best Buy. Federal Reserve officials will also deliver remarks, and economic data releases are expected, including updates on home prices, consumer surveys, GDP estimates, jobless benefits, and inflation data. The week will provide further insights into the state of the economy and financial markets.
