US Consumer Still Spending

Apollo Chief Economist

The daily TSA travel data is strong, hotel occupancy rates are trending higher, Las Vegas visitor volumes are moving higher, and Nevada casino winnings are near all-time highs, see charts below. There are simply no signs of the US consumer slowing down, and with record-high household savings, despite all the talk about inflation, it will require many more Fed hikes before the economy starts to meaningfully cool down.

Chart showing that the number of travelers at TSA checkpoints are very strong
Source: TSA, Bloomberg, Apollo Chief Economist
Chart showing strong demand for hotel rooms
Source: STR, Haver Analytics, Apollo Chief Economist
Chart showing the number of visitors to Las Vegas are nearly back to pre-pandemic levels
Source: LCVCA, Bloomberg, Apollo Chief Economist
Chart showing winnings at Nevada casinos have rebounded sharply from the pandemic and are near record highs
Source: Bloomberg, Apollo Chief Economist. Note: Winnings includes total revenue from table, counter and card games and slot machines.

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