We're taking that vacation whether we like it or not ๐ซ
What consumers do matters more than what they say ๐
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.
โThe share of consumers planning a vacation over the next six months continued to increase and remains above last Juneโs level,โ 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 isnโt just some anecdotal fluke. Broad spending data has shown consistently that weak sentiment isnโt keeping consumers from spending at a healthy clip.
Sure, spending growth hasnโt exactly been gangbusters in recent months. But the numbers continue to trend higher. They certainly arenโt down like the sentiment data.
Itโs a contradiction that continues to slant favorably for investors.
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