We're taking that vacation whether we like it or not 🛫
What consumers do matters more than what they say 🙃
Consumer sentiment ticked lower in June, according to Conference Board and University of Michigan survey data.
As the chart above shows, sentiment had a long way to go before it can get back to prepandemic levels.
But there was an interesting detail in the survey data.
“The share of consumers planning a vacation over the next six months continued to increase and remains above last June’s level,“ the Conference Board observed.
Morgan Stanley survey data and Mastercard spending data confirm this strength in vacation travel.
This is notable because unlike food or rent, vacationing is considered a discretionary expense.
And this isn’t just some anecdotal fluke. Broad spending data has shown consistently that weak sentiment isn’t keeping consumers from spending at a healthy clip.
Sure, spending growth hasn’t exactly been gangbusters in recent months. But the numbers continue to trend higher. They certainly aren’t down like the sentiment data.
It’s a contradiction that continues to slant favorably for investors.
