Friday, October 13, 2006
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Consumer Spending on the Performing Arts Remains Flat Despite Growing Economy.
Inflation-adjusted spending on performing arts events remained at 2004 levels in 2005, according to a recent Note from the National Endowment for the Arts. Despite the standstill, performing arts fared better than other spectator events in 2005. While growth for spending on performing arts events fell to 0%, spending on sports events and movie tickets fell by 1.6% and 3.4%, respectively.
Dwindling spending on spectator events occurred within a strong U.S. economy. Inflation-adjusted GDP grew by 3.2% in 2005, according to the Note. Increases in total consumer expenditures also increased by 3.5%, indicating consumer confidence in the U.S. economy. Consumer confidence and increased expenditures were driven, specifically, by sharp increases in real estate value and rebounding stock prices.
The Note suggests that the consumer spending shifted away from spectator events to recreation. The recreation category includes spending on computers, sporting equipment, non-durable toys, video, and audio and books and maps. Total inflation-adjusted recreation spending grew by 7.8% in 2005, spurred on by significant growth in real spending on computers at 24%. Inflation-adjusted spending on video and audio goods saw a 12.7% increase and spending on books and maps increased by 4.3%.
Source: Nichols, Bonnie. "Consumer Spending on Performing Arts: Outlays Flat for 2005; Non-Spectator Categories Show Growth" [Available Online]. The National Endowment for the Arts, Note # 91. August 2006. Available from http://www.arts.gov/pub/Notes/91.pdf.