Americans increased hobby spending 7.9% year over year in August, more than twice the 3.4% growth in hobby-related transactions, according to Bank of America Institute analysis of the bank’s card data. The divergence indicates consumers were spending more on each purchase and marks a rebound after hobby spending declined through late 2024. Older Millennials were among the biggest spenders at arts and craft stores, hobby shops and outdoor recreation providers and retailers, potentially reflecting purchases for themselves and their children. Gen Z recorded little growth in hobby transactions but spent 20% more year over year on video games. The shift comes as the cost of going out rises: airline fares increased 23.4% in August from a year earlier, food away from home rose 3.4%, and the national average gasoline price reached $4.45, up about 30% year over year, according to the cited data. With inflation at 3.4% over the 12 months through August and the Federal Reserve raising interest rates by a quarter percentage point, consumers are increasingly turning to home-based entertainment. Streaming subscriptions are held on more U.S. cards than movie-theater and concert spending, while the share of domestic U.S. spending made through apps reached 58% this year, up from 48% in 2019.