In economics, there are lead indicators and lag indicators. But often, the coincident indicators–stats that show the current state of the U.S. economy–are telling.
The Conference Board reports that a record-high number of U.S. consumers are preparing to vacation to a foreign country within the next six months. That’s an all-time high for a stat kept since 1967. To a reasonable person, only a strong, confident consumer will make such ambitious travel preparations!
Financial headlines have warned about growing consumer credit card balances. You may have also seen concerns that U.S. consumers may not be as resilient in 2024. Since consumer spending is about 70% of gross domestic product, you can see why those headlines can be concerning.
In my household, we value experiences far greater than material items and traveling is a way to create experiences and memories that can never be replaced. While it’s encouraging that 22% of U.S. consumers are ready to travel abroad, I hope they have saved and prepared for the travel before committing. This would mean they have been good stewards of their personal finances in recent years, and they are confident about exploring the world.
If you’d like to learn more about how consumer confidence may affect the economy, and the world of investing in general, please feel free to reach out.