Bank of America report says 'funflation' is hitting hobby spending
Fox Business • • business
Key Points:
- A Bank of America Institute report reveals that American consumers are spending more on hobbies despite facing higher prices, a phenomenon termed "funflation," with spending up 7.9% year over year in August, outpacing transaction growth.
- The report highlights a shift in consumer behavior, suggesting that after splurging on hobbies during the pandemic and favoring travel in 2022-2023, some consumers are returning to hobbies due to slower wage growth and rising travel costs.
- Older millennials lead in hobby spending, likely due to having young children, followed by baby boomers and Gen X, while younger millennials and Gen Z spend less but engage more in lower-cost hobbies like arts, crafts, and board games.
- Gen Z's hobby spending growth has slowed significantly, driven by reduced outdoor recreation expenses but increased spending on gaming, including board and tabletop role-playing games, which align with their higher leisure time spent on gaming activities.
