Consumer spending consistently accounts for about 70% of the US economy. What Americans buy with all that spending falls into two major categories: First, there’s nondiscretionary spending on necessities like food, medicine, housing, and clothing. Second, there is discretionary spendingwhich includes all non-essential goods and services. The data below gives a reasonably accurate picture of the nation’s pastimes and amusements, its interests, hobbies, indulgences and vices.

Consumer spending: an overview

In 2022, the average annual expenditure for all consumer units in the United States will increase by 9% to reach $72,967, according to the US Bureau of Labor Statistics. During the same period, Consumer Price Index (CPI) for all urban consumers by 8% and average pre-tax income increased by 7.5%.

The breakdown of these expenses reveals that housing was the largest component, representing 33.3%, followed by transport with 16.8%. A number of aggregate categories added less than 5% to the total, including miscellaneous, personal care products and services, alcoholic beverages, tobacco products, and smoking and reading supplies.

Consumer spending in certain categories

Below are the main categories of spending that the BLS collects and tracks statistics for. Note that as of October 2023, the most recent annual data from the BLS covers calendar year 2022. The statistics below cover not only spending for that year, but also the year-over-year change in 2021.

Housing

Housing spending rose by 7.4% in 2022, after a 5.6% increase in 2021. Both rental housing and owned homes have seen significant increases, with increases of 6.5% and 8.4% respectively. The most notable increase in housing expenditure across all major components was seen in “other housing”, with a substantial increase of 30.9%, mainly driven by a 38.6% increase in travel accommodation costs without the walls.

Transport

Transportation spending saw substantial growth of 12.2% in 2022, building on growth of 11.6% in 2021. This growth was primarily attributed to noteworthy growth in public spending and other transportation, which increased significantly by 86.9%. There was also a 45.3% increase in spending on petrol, other fuels and motor oil. On the other hand, average spending on vehicle purchases fell 6.9% in 2022, after rising 6.7% in 2021.

Food

Spending on food grew by 12.7% in 2022, compared to growth of 13.4% in 2021. This growth was mainly fueled by a substantial 20.1% increase in spending on food away from home, alongside of an 8.4% increase in spending on food at home. In particular, spending on food away from home in 2022 surpassed 2019 levels, marking the first time since the start of the COVID-19 pandemic that such a recovery has occurred.

Personal insurance and pensions

Spending on personal insurance and pensions increased by 11.0% in 2022, after an increase of 8.7% in 2021. This significant increase was fueled by an 11.1% increase in pension and social security contributions. Spending on life insurance and other personal insurance also saw a notable increase, increasing by 9.7%.

Entertainment

Entertainment spending declined in 2022, falling 3.1% after a substantial 22.7% increase in 2021. This decline was mainly driven by a notable 24.5% drop in spending on other goods, equipment and entertainment services, which is in stark contrast. to the 60.6% increase seen in 2021. (as residual implications from the COVID-19 lockdown). Spending on toys, hobbies and play equipment also saw a 16.1% reduction from 2021 to 2022.

Clothing and Services

Spending on apparel and services grew by 10.9% in 2022, following a substantial 22.3% increase in 2021. All major components of the apparel and services category saw increases, with the most significant being an increase of 18 .8% of spending on shoes. This 10.9% increase brought spending on apparel and services back to levels that exceed pre-Covid-19 spending levels.

Personal care

Spending on personal care products and services continued to grow, growing 12.3% in 2022, following substantial growth of 19.3% in 2021. This growth was driven by a 15.5% increase of spending on personal care products, rebounding strongly after a 1.0% decline in 2021 growth.

conclusion

Consumer spending and the US economy go hand in hand. When one grows, so does the other. What Americans buy and what percentage of their purchases are spent on nonessentials reflects their interests, habits, and vices. What America Buystherefore, it is an economic self-portrait of the average American consumer.