Consumers Spend More on Hobbies Despite Rising Costs
Consumer spending on hobbies such as arts and crafts, outdoor activities, and recreational goods increased significantly in August 2026 according to a Bank of America analysis. This trend is occurring amid rising prices for leisure activities — referred to as 'funflation' — yet consumers continue to allocate more money toward these pursuits. Spending grew by 7.9% year-on-year compared to just 3.4% growth in the number of transactions, indicating both increased frequency and higher per-purchase spending. The Bureau of Labor Statistics reported a 2.7% annual increase in recreation-related prices through August, while sales at hobby and sporting goods stores rose by 10.7%, outpacing overall retail growth. Experts suggest that as travel becomes more expensive — with airfare up 26.5% year-on-year due to rising fuel costs from the U.S.-Iran war — consumers are substituting holidays for home-based hobbies. John Gathergood, an economics professor at the University of Nottingham, noted this shift may reflect a broader trend where people trade off more expensive travel and dining out in favor of cheaper or more personal leisure activities. The data also highlights generational differences: older millennials spent significantly more on hobbies than Gen Z during the period analyzed.
Topics: consumer spending funflation hobbies recreation costs