Taylor Swift, Beyoncé, and the “Pappenheimer” craze are giving the American economy a big boost.
Big-star tours and blockbuster movies are expected to add $8.5 billion to U.S. economic growth in the third quarter, according to Bloomberg Economics.Nearly 50 U.S. concerts scheduled by artists could add $5.4 billion to gross domestic product, while movies Barbie and oppenheimer International ticket sales are expected to boost consumer spending and exports by approximately $3.1 billion.
Overall, this would make annualized real growth in the July-September period, economists Anna Wong and Eliza Winger wrote in a note Wednesday night. Personal consumption expenditure and GDP increased by 0.7 and 0.5 percentage points respectively. Economists nearly doubled their growth forecasts for the July-September period, partly because of higher spending.
These forecasts further support the economic pick up steam the last few months.Inflation is subduing, labor market remains firm, favoring power expenditures.This has prompted some economists Delay They call for recession, while others call for scrap them common.
However, the Bloomberg team believes the boost from movies and travel will be short-lived. They noted that neither Beyoncé nor Swift had plans to hit the American stage in the final three months of the year, describing “pappenheimer” has been called a “once-in-a-lifetime” event. What’s more, the economy remains vulnerable to drop in demand real estate market is under pressure Insufficient supply and rising mortgage rates.
“A large part of this strength comes from temporary factors,” they wrote. “These factors have created the illusion of consumer elasticity when in fact it has lost steam.”
Economists only considered gate receipts Barbie and oppenheimer As of Wednesday, it does not include the net export impact of Swift’s four concerts in Mexico City this week.
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