(Bloomberg) -- News from several travel-related companies shows consumer spending is healthy. Demand is high, and the industry is rebounding as pandemic-era troubles subside.
United Airlines boosted its sales and margin outlooks, citing strong demand in the wake of a “robust” summer. Travel and tourism firm Sabre (NASDAQ:SABR) said air bookings and passengers boarded in late August reached the highest levels since the beginning of the pandemic.
Signals were more mixed from consumer-goods firm Newell Brands. On one hand, the company is still “enthusiastic” about the key back-to-school spending season (the year’s second-largest selling season). But, there’s been a pullback in retailer orders and inflation is pressuring shoppers. That’s not that surprising, as Newell’s customers are mainly mass retailers like Walmart (NYSE:WMT) and Target (NYSE:TGT) -- which have been grappling with bloated inventories and shifting consumption patterns -- but still points to lingering issues.
With all eyes on the August CPI report and the Fed’s inflation battle, tumbling gasoline prices are offering squeezed consumers some relief, allowing for more spending on other things.
- NOTE: Felice Maranz writes for Bloomberg’s Markets Live blog. The observations she makes are her own and not intended as investment advice. For more markets commentary, see the MLIV blog
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