Alongside higher incomes, household savings in Nebraska have increased since the pandemic. Strong household finances, along with pent-up demand from the pandemic, has fueled discretionary spending on recreation and experiences, from going to sporting events and visiting museums to eating at restaurants and staying in hotels. That spending might have been even higher, but businesses have likely been constrained by labor shortages and high input costs, possibly limiting options or availability for buyers.
See the following for an update on the leisure and hospitality sector in Nebraska. Or PDFdownload the charts here.
Household savings in Nebraska appear to be higher than before the pandemic, despite easing from a recent peak.
Sources: BEA, Haver Analytics, author’s calculations.
Higher savings have supported spending on recreation and experiences following pent-up demand from the pandemic.
Note: Recreation and experience spending includes household spending on membership clubs, sports centers, parks, theaters, museums, gambling, package tours, purchased meals and beverages, and accommodations.
Sources: BEA, author’s calculations.
Inflation has contributed to some, but not all, of increased spending on recreation and experiences.
Sources: BLS, Haver Analytics.
Following a pandemic-induced decline, the share of disposable income spent on recreation and experiences has rebounded.
Note: Recreation and experience spending includes household spending on membership clubs, sports centers, parks, theaters, museums, gambling, package tours, purchased meals and beverages, and accommodations. Projection applies the 2020-22 average annual percent change.
Sources: BEA, Haver Analytics, author’s calculations.
Nebraskans spend less on recreation and experiences than other states, suggesting some potential for further growth.
Note: Numbers in parentheses refer to the share of per capita household consumption in Nebraska. Recreation and experience spending includes household spending on membership clubs, sports centers, parks, theaters, museums, gambling, package tours, purchased meals and beverages, and accommodations.
Sources: BEA, author’s calculations.
Fewer businesses providing recreation and experiences have opened since the pandemic compared to the broader economy.
Sources: BLS.
Nationally, it has been more difficult for businesses in the leisure and hospitality industry to fill open positions.
Sources: BLS, Haver Analytics.
Some businesses providing recreation and experiences have raised wages notably in an attempt to fill job openings.
Sources: BLS, Haver Analytics.
In Nebraska, employment at bars and hotels has been slowest to recover to pre-pandemic levels.
Sources: BLS, Haver Analytics.
In addition to higher labor costs, businesses providing recreation and experiences also report elevated input prices.
Source: Federal Reserve Bank of Kansas City.
Reflecting constraints in the industry, activity in leisure and hospitality has grown more slowly than the economy overall.
Note: In 2023, Leisure and Hospitality GDP comprised 2.6% of GDP in Nebraska and 4.0% of total US GDP.
Sources: BEA, Haver Analytics.
Concluding Thoughts
Despite higher prices, consumers continue to spend on discretionary recreation and experiences, supported by strong income growth and elevated savings. Businesses offering recreation and experience-oriented services, however, may remain constrained by ongoing cost pressures and labor scarcity as economic growth in Nebraska has remained strong.