Jeff Sica from Circle Squared Alternative Investments discussed the economic effects of the World Cup on places like New Jersey and New York City during an appearance on Varney & Co.
The event significantly influenced consumer spending nationwide in June, with host cities experiencing notable upticks, recent data from Bank of America reveals.
The Bank of America Research Institute reported that consumer spending via credit and debit cards surged 6.3% year over year in June—marking the highest growth in over four years. This increase was largely driven by discretionary spending spurred by lower gas prices, and spending excluding fuel rose by 5.6%.
The data indicated that the kickoff of the 2026 FIFA World Cup on June 11 played a role in boosting spending during that month compared to the previous year.
“The World Cup had a strong effect on consumer spending in June,” according to Joe Wadford, an economist at the Bank of America Research Institute. “We observed substantial improvements in card spending towards the end of June, enhanced by the World Cup’s excitement.”
Bank of America’s data indicates that spending patterns since the tournament began show increases, particularly in restaurants and bars, likely influenced by the World Cup. They noted that some of the increase stemmed from an online promotion that happened in late June, aligning with the previous year.
The analysis evaluated in-store spending in World Cup host cities against the rest of the U.S. by ZIP code, revealing that spikes were particularly strong in areas where matches were held. During this time, spending at restaurants in host cities rose by 2 percentage points, whereas spending in other locations remained stagnant.
“Host cities for the World Cup experienced a significant rise in in-person spending, especially when compared to the rest of the country,” Wadford commented.
Also, data excluding restaurants highlighted that, while the number of stores in host cities grew after the tournament’s onset, spending at non-restaurant retailers elsewhere declined once the World Cup began.
“From packed stadiums to bustling restaurants, the World Cup delivered a financial boost. Local retailers and eateries were two of the main beneficiaries,” Wadford remarked.
“This is quite a positive development, indicating that a considerable portion of spending attributed to the World Cup remained within the local community,” he added.
A separate analysis at the Bank of America Research Institute reviewed card data by income level, noting that lower-income households particularly increased spending at local stores in host areas, while higher-income households slightly lessened their spending.
Moreover, when examining spending trends before and after the World Cup, all income groups exhibited higher spending at brick-and-mortar restaurants.
“Definitely, lower-income households were the most significant contributors to spending during the World Cup. Younger households, which often have lower incomes, likely led this trend as they were more inclined to go out and celebrate such a major event,” Wadford explained.
“However, this boost is also part of a larger narrative of economic improvement for lower-income households. We’re observing better labor markets and rising wages, both of which are encouraging higher spending among these groups,” he concluded.
