The FIFA World Cup delivered a measurable boost to bars, restaurants, and hotels in host cities, but the gains failed to offset wider economic softness, according to a new Federal Reserve report.
The Fed’s Beige Book, released Wednesday, offered a mixed portrait of an economy where a major global sporting event could not fully overcome mounting consumer caution and spending pullbacks.
Median ticket admissions prices for the tournament topped $900, according to TicketData, signaling strong demand from dedicated fans willing to pay a premium to attend matches.
The Boston Fed reported that hotel bookings tied to the World Cup were initially softer than expected, though occupancy levels recovered after properties lowered room prices to attract guests.
Bars in Boston reported higher beer sales connected to the tournament, and some establishments reportedly ran out of beer entirely when Scottish fans arrived in the city in large numbers.
The Boston Fed’s coverage region saw more visitors from Canada than it did last summer, though those levels remained far below historical averages, a trend hitting coastal Maine and northern Vermont especially hard.
Some restaurants and bars in New York City said sales were “strong” as a result of match-viewing events, though other eateries reported fewer international visitors, with Canadian foot traffic specifically down.
The Canadian government has reported fewer citizens crossing the U.S. border following President Donald Trump’s tariff policy rollout and sovereignty threats, part of a broader push among Canadians to spend domestically.
New York City hotels reported higher occupancy and room prices from the tournament, but some mid-tier attractions saw softness, and a department store said increased foot traffic did not translate into higher sales.
In cities hosting World Cup matches tracked by the San Francisco Fed, tourist volumes came in high, yet in other markets, locals pulled back spending on restaurants, hotels, and entertainment.
The San Francisco Fed said overall demand for consumer and business services “slowed somewhat on net,” underlining the limits of the tournament’s economic reach beyond host markets.
Across the board, the Fed noted that growth in consumer spending was capped as rising oil prices led many households to cut back elsewhere on discretionary purchases.
Several regions observed consumers actively seeking cheaper alternatives to products or reducing discretionary spending to preserve savings, painting a cautious picture of the American consumer heading into the second half of 2026.
