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

Americans feeling pinched financially are splurging on small treats while https://www.axios.com/economy" target="_blank">economic anxiety and https://www.axios.com/2026/05/13/ppi-iran-inflation" target="_blank">inflation jitters put off larger purchases.

Why it matters: From movie tickets to collectible https://edition.cnn.com/2026/05/18/style/swatch-audemars-piguet-royal-pop-collaboration" target="_blank">watches, those affordable indulgences are helping sustain https://www.axios.com/2026/05/14/consumers-retail-sales-fuel" target="_blank">consumer spending.

• The economy remains in what some economists call a "vibecession," where https://www.axios.com/2026/05/14/fed-survey-us-sentiment-ai" target="_blank">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 https://www.axios.com/2026/05/01/us-economy-spending-growth-income" target="_blank">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 https://latestcost.com/average-cost-movie-ticket-united-states/" target="_blank">estimates, making them a wallet-friendly splurge.
• Movies are also leaning into https://www.axios.com/2023/02/06/amc-theatres-value-sightline-standard-preferred-movie-tickets" target="_blank">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 https://www.wsj.com/business/media/the-50-movie-ticket-has-arrived-42251672" target="_blank">$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 https://ir.doordash.com/news/news-details/2026/DoorDash-Releases-First-Quarter-2026-Financial-Results/default.aspx" target="_blank">reported a 27% year-over-year increase in orders in the first quarter.

• https://www.reuters.com/markets/on-the-money/how-millennial-is-turning-rare-collectibles-into-profit-2026-03-19/" target="_blank">Hobbies and collectibles are in demand — notably a limited-edition, pop art-inspired pocket watch that drew large crowds to Swatch stores in https://www.nytimes.com/2026/05/16/business/swatch-audemars-piguet-watch-launch-closures.html" target="_blank">New York, the https://www.bbc.com/news/articles/c302vjqz563o" target="_blank">United Kingdom and France.

Zoom out: Economists have often referred to small splurges in tough economic times as the "https://www.investing.com/analysis/is-the-lipstick-index-still-valid-200662408" target="_blank">lipstick index," and personal care products are seeing https://www.vogue.com/article/inside-the-indian-beauty-boom" target="_blank">a boost from consumers' anxieties.

• L'Oréal, the world's largest beauty company and owner of high-end brands such as YSL Beauty and Urban Decay, https://www.loreal-finance.com/eng/press-release/first-quarter-2026-sales" target="_blank">reported that first-quarter beauty product sales rose 6.7%.
• Affordable luxury https://www.openpr.com/news/4474623/affordable-luxury-fashion-market-size-accelerating-at-6-5-cagr" target="_blank">fashion and https://www.fortunebusinessinsights.com/affordable-luxury-fashion-market-114176" target="_blank">accessories are selling well.

  Sofia Baig, a senior economist at Morning Consult, tells Axios that households with incomes over $100,000 increased spending on apparel by 16% over the past six months, while those earning less than $50,000 cut it by 6%.

What we're watching: Rising https://www.axios.com/energy-climate/oil-companies" target="_blank">oil prices tied to the Iran conflict are threatening to https://www.axios.com/2026/05/01/iran-us-war-oil-gas-travel-flights-jet-fuel-summer-vacation" target="_blank">hit summer travel as https://www.axios.com/2026/04/29/jet-fuel-airline-dealmaking" target="_blank">jet fuel and https://www.axios.com/2026/05/01/gas-inflation-spending-vibecession" target="_blank">gas prices remain elevated in an energy crisis experts warn could last https://www.factcheck.org/2026/05/what-will-happen-to-gasoline-prices-when-the-iran-war-ends/" target="_blank">months.

• For now, travel spending remains strong across the board, Baig says.

Zoom in: Morning Consult's https://www.linkedin.com/posts/sofia-baig_k-shaped-economy-morning-consults-index-share-7394782014358364160-Tqe-/" target="_blank">Consumer Health Index indicates that high-income consumers' spending has retreated somewhat since the Iran war triggered a gas price spike.

• However, it remains "elevated historically" among this demographic, Baig says.
• Pacific Research Institute analysis https://www.pacificresearch.org/higher-energy-prices-could-cost-families-over-1100-in-2026/" target="_blank">released after the https://www.axios.com/2026/05/12/cpi-april-inflation-iran-trump" target="_blank">Consumer Price Index rose 3.8% in the 12 months through April shows that if current levels persist, it would cost families an extra $1,100-plus in annual energy expenditure in 2026 compared to the same period last year.

Go deeper: https://www.axios.com/2026/05/14/consumers-retail-sales-fuel" target="_blank">Early signs of consumer angst in April's retail sales report