5 Stocks To Play As Leisure Spending Picks Up The Pace In June

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Rapid vaccination across the United States is constantly lending support to the economic rebound. Along with other cyclical sectors like industrial, financial and energy, consumer discretionary is poised to grow on the back of economic recovery and impressive performance.

As of May 30, the U.S. Centers for Disease Control and Prevention (CDC) reported that America administered 294,928,850 doses of COVID-19 vaccines and distributed 366,316,945 doses. The decline in cases helped the administration lift restrictions and businesses return to normalcy. In its latest public health guidelines, the group also stated that restrictions on wearing masks at both indoor and at public gatherings are relaxed. Per the new recommendation, those who got completely vaccinated do not need to wear masks or maintain social distancing at indoor or outdoor gatherings. In fact, those traveling domestically do not need to get tested before or after arrival or self-quarantine after travel.

Additionally, the decline in the unemployment rate in the past weeks has been boosting consumer confidence consistently. The Conference Board recently reported that its consumer sentiment index stands at 117.2 for May after being downwardly revised in April. This stable consumer confidence is also helping the leisure industry gear up for a post-pandemic resurgence. With restrictions being eased, Americans are venturing out and engaging in outdoor recreation.

According to a Deloitte survey report, all age- and income groups are making plans to travel, capitalizing on the summer season. Going by the survey, 22% people confirmed that they planned to spend significantly higher than the pre-pandemic summer (especially more than that of 2019) levels. Those planning a vacation are looking to avoid the crowd and visit national and state parks with enhanced safety measures.

The pandemic also created low-key, close-to-home destinations for many who are unsure of traveling to high-density tourist spots both inside and outside their state or country. For instance, Yakima Valley emerged as one such getaway site. Leisure travelers are driving their RVs or taking the hop-on, hop-off shuttles to the spot, visiting the breweries, and camping with their families. Hence, unchartered territories with sparse population could become tourist hotspots, which in turn, will help sustain tourism. Journeys along scenic routes and to national sanctuaries are likely to increase and due to lack of hotels and facilities, sales of RVs and campers are also poised to grow.

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