published : 2023-10-26
Taylor Swift, Beyonce Drive Surge in 3Q GDP, Exceeding Expectations
Taylor Swift's Eras Tour Takes the Spotlight, Raising $780 Million
Former U.S. International Trade Commission Chief Peter Morici joined 'Varney & Co.' to discuss the state of the U.S. markets amid the Israel-Hamas war.
U.S. consumers indulged in a summer of entertainment, flocking to concerts by Taylor Swift and Beyonce, while also boosting record numbers for U.S. air travel.
The Gross Domestic Product (GDP) recorded an impressive growth of 4.9%, surpassing estimates of 4.3% to 4.5%, and more than double the previous quarter's 2.1%.
Experts attribute this surge to what they refer to as 'revenge spending' post-pandemic, particularly concentrated in the service sector.
Taylor Swift's Eras Tour exemplified this trend, securing the top spot by generating a staggering $780 million in revenue.
Forbes reports that ticket prices soared to over $1,000 for some shows due to high demand from devoted fans.
Other notable performers, including Beyonce's Renaissance World Tour, also achieved remarkable earnings of $460 million.
Pink's Summer Carnival Tour brought in $300 million, while Coldplay and Ed Sheeran surpassed the $200 million mark.
Summer travel contributed significantly to the GDP growth, with a record-breaking 227 million people passing through U.S. airports, as reported by TSA.
However, experts caution that this rapid growth is unsustainable and predict a slowdown in the coming months.
Tightened lending standards and a decrease in loan demand, alongside rising delinquency rates among consumers, are signs of this slowdown.
Furthermore, Fitch's data indicates a worrying increase in auto loan delinquencies, with factors like geopolitical uncertainty and domestic issues adding to the mix.
BNP Paribas predicts a slowdown in the fourth quarter, with growth sinking back to 1.5%, falling well below the standard range of 2%-3%+ indicative of a healthy economy.