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Surprising Trends in American Spending Habits You Need to Know
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Consumer spending has always accounted for about 70% of the U.S. economy. Americans’ consumption is mainly divided into two major categories: The first category is non-discretionary spending on necessities such as food, medicine, housing and clothing. Secondly, there are discretionary spendingwhich includes all non-essential items and services. The data below gives a fairly accurate picture of the country’s entertainment, interests, hobbies, hobbies, and vices.
Main points
- Consumer spending refers to all consumption final goods and services currently used by individuals and households, including necessities and discretionary purchases.
- Overall, consumer spending exceeds $13 trillion, accounting for approximately 70% of U.S. GDP.
- In 2022, per capita spending in the United States will be $72,967.
- In 2022, per capita spending in the United States will increase by 9% year-on-year compared with 2021.
Consumer Spending: Overview
According to the U.S. Bureau of Labor Statistics, average annual spending by all U.S. consumer units increased 9% in 2022, reaching $72,967. During the same period, Consumer Price Index (CPI) The total urban consumers grew by 8%, and the average pre-tax income increased by 7.5%.
A breakdown of these expenditures shows that housing is the largest component at 33.3%, followed by transport at 16.8%. Some aggregate categories total less than 5%, including miscellaneous, personal care products and services, alcoholic beverages, tobacco products and smoking supplies, and reading.
As you read the year-to-year changes, consider how fragile and unique the global economy is in 2021. The year-to-year changes in 2021 and 2022 mark a unique transition to a post-pandemic world, often with dramatic outcomes that differ from “normal” economic conditions.
specific categories of consumer spending
Here are the major spending categories for which the Bureau of Labor Statistics compiles and tracks statistics. Note that as of October 2023, the latest annual data from the Bureau of Labor Statistics covers 2022. The statistics below cover not only spending for the year, but also year-over-year changes since 2021.
housing
Housing spending surged 7.4% in 2022, following a 5.6% increase in 2021. rental residences and Owned residence The growth rates were significant, with increases of 6.5% and 8.4% respectively. The most significant increase in housing-related spending of all major components was in “other accommodation”, which increased significantly by 30.9%, mainly due to a 38.6% increase in the cost of accommodation for out-of-town travel.
transportation
Transportation spending will surge by 12.2% in 2022, building on an 11.6% increase in 2021. This increase was mainly attributed to a significant increase in public and other transportation expenditures, which increased by as much as 86.9%. Expenses related to gasoline, other fuels and oil also increased 45.3%. On the other hand, the average expenditure on car purchases will decrease by 6.9% in 2022 after increasing by 6.7% in 2021.
As consumers are recalled to physical offices, it’s no surprise that both public and private transportation costs will rise in 2022.
food
Food spending increased by 12.7% in 2022, compared with a 13.4% increase in 2021. This increase was mainly due to a significant increase in out-of-home food expenditure of 20.1%, while domestic food expenditure increased by 8.4%. Notably, out-of-home food spending in 2022 exceeded 2019 levels, the first time such a recovery has occurred since the COVID-19 pandemic began.
Personal insurance and pensions
spent on personal insurance Pensions surged 11.0% in 2022, following an 8.7% increase in 2021. This significant growth was driven by an 11.1% increase in pension and social security contributions. Spending on life and other personal insurance also rose significantly, up 9.7%.
entertainment
After a sharp increase of 22.7% in 2021, entertainment spending declined in 2022, down 3.1%. This decrease was primarily due to a significant 24.5% decline in spending on other recreational supplies, equipment and services, which contrasted with this. That’s an increase of 60.6% in 2021. (As a residual effect of the COVID-19 lockdown). Spending on toys, hobbies and playground equipment also fell 16.1% from 2021 to 2022.
clothing and services
Spending on clothing and services will grow by 10.9% in 2022, following a sharp increase of 22.3% in 2021. All major components within the apparel and services category experienced growth, most notably an 18.8% increase in spending on footwear. The 10.9% increase returned spending on apparel and services to levels above pre-COVID-19 pandemic spending levels.
personal care
Spending on personal care products and services continues to grow, with growth of 12.3% in 2022 following a significant increase of 19.3% in 2021. The increase was driven by a 15.5% surge in spending on personal care products, which rebounded strongly after rising 1.0% in 2021.
bottom line
Consumer spending and the U.S. economy go hand in hand. When one increases, the other also increases. What Americans buy and what percentage of their purchases they spend on non-essentials reflects their interests, habits, and vices. What to buy in the United StatesSo this is an economic self-portrait of the average American consumer.
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