Written by Safia Riedel
(Reuters) – More than one in five Americans plan a vacation to a foreign country in the near future, the highest percentage ever recorded, even as overall consumer confidence slumped due to worsening inflation expectations in August.
Conference Board data released Tuesday revealed that 21.8% of Americans plan to visit a foreign country in the next six months, up from 17.7% in June. Every two months since 1978, the Economic Research Organization has asked households about their travel plans as part of its Consumer Confidence Index survey.
At 45.9%, the data showed that the share of Americans with vacation plans of any kind is the second highest since the coronavirus pandemic devastated the tourism industry in early 2020.
The rise in travel intentions was highlighted in a report that was subdued, as August ended the recent rise in overall consumer confidence and fell from its highest level in nearly two years in July. The decline in confidence was largely driven by rising concerns about food and gas price inflation, leading some economists to conclude that the sustained strength we have seen in consumer spending may soon unravel.
The report also revealed concerns about the labor market, which was underscored by Labor Department data showing that the number of people leaving their jobs reached a near two-and-a-half-year low in July, indicating that Americans are becoming less confident in the economy. Labor market.
However, demand for travel remained unexpectedly strong, with no clear sign of abating. The poll showed that 24% of Americans plan to travel by plane in the next six months, the second highest percentage since the outbreak of the epidemic in March 2020.
(Reporting by Safia Riedel; Editing by Andrea Ricci)
