Watches, movies and burrito taxis: How Americans splurge in a vibecession

Americans feeling pinched financially are splurging on small treats while economic anxiety and inflation jitters put off larger purchases. Why it matters: From movie tickets to collectible watches , those affordable indulgences are helping sustain consumer spending . The economy remains in what some economists call a "vibecession," where consumers feel relatively stable personally while pessimistic about the broader economy. Consumers feel caught between a "combination of rising inflation, slowing after-tax real incomes, and rising credit card debt," Wayne Winegarden, a senior fellow in business and economics at Pacific Research Institute, tells Axios. In a K-shaped economy, the wealthy can still indulge while lower-income consumers pull back and sate themselves with smaller purchases, economists say. State of play: Winegarden expects lower-income households to opt for movies or staycations this Memorial Day weekend as economic conditions tighten. Theaters have a national ticket average of $10.75 and $14–$20 for IMAX and premium formats, per LatestCost estimates , making them a wallet-friendly splurge. Movies are also leaning into premium experiences to give visitors more for their dollar, Kent Fung, vice president at Fundstrat Global Advisors, wrote in a note. Yes, but: At the higher end of the market, Fung noted "one theater chain quickly sold out of eyepoppingly expensive $50 tickets for a premium opening-night experience" to see the upcoming "Dune: Part Three." Other vibecession winners include food-delivery services like DoorDash, which reported a 27% year-over-year increase in orders in the first quarter. Hobbies and collectibles are in demand — notably a limited-edition, pop art-inspired pocket watch that drew large crowds to Swatch stores in New York , the United Kingdom and France. Zoom out: Economists have often referred to small splurges in tough economic times as the " lipstick index ," and personal ...

Original source: Axios