"Instead of Traveling, Where Are U.S. Consumers Turning Amid High Inflation?"

Hobbies Replace Travel as Leisure Habits Change Amid High Inflation

Home-Based Activities Like Knitting and Baking Gain Popularity

Although so-called "funflation"—the rise in costs for travel, hobbies, and other leisure activities—continues in the United States, consumers have not reduced their spending. Funflation is a term combining "fun" and "inflation."

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According to CNBC on September 27 (local time), Bank of America (BofA) analyzed that U.S. consumer spending on hobbies in August increased by 7.9% compared to the same month last year.

According to the U.S. Bureau of Labor Statistics (BLS), the leisure price index—which includes video and audio equipment, pet-related services, sporting goods, photography, and leisure reading—rose by 2.7% over the past year.

Despite the rise in the leisure price index, consumers have not tightened their wallets. Data from the U.S. Census Bureau shows that sales in sporting goods, hobby goods, musical instruments, and bookstores jumped by 10.7% over the same period, far outpacing the 6% increase in total U.S. retail and food service sales.

By generation, Millennials (born 1981-1996) spent the most on hobbies. Per-capita spending among Millennials was more than twice as high as that of Generation Z (born 1997-2012).

BofA pointed to rising travel expenses as a reason for increased hobby spending. The analysis suggests that higher costs for accommodation and airfare may have led consumers to redirect travel budgets toward hobbies.

John Gathergood, a professor at the University of Nottingham in the United Kingdom, said, "Skipping just one overseas trip can save a significant amount of money," adding, "As high inflation persists, consumers are choosing hobbies they can enjoy at home, rather than giving up fun altogether or opting for travel and dining out."

The growing popularity of so-called "granny core"—slower and simpler hobbies like knitting, sewing, or baking traditionally enjoyed by older generations—among younger people is also believed to have contributed to increased spending.

Spending on video games has increased across all age groups. From August last year to August this year, per-capita video game spending rose for every generation, with even Generation Z—showing the smallest growth—increasing their spending by 20%.

This content was produced with the assistance of AI translation services.