Internet address: http://www.bls.gov/cex USDL-054-2243 Technical information: 202-691-6900 FOR RELEASE: 10:00 A.M. EST Media information: 202-691-5902 Tuesday, November 29, 2005 CONSUMER EXPENDITURES IN 2004 Average annual expenditures per consumer unit rose 6.3 percent in 2004, following increases of 0.3 percent in 2003 and 2.9 percent in 2002, according to results from the Consumer Expenditure Survey released by the Bureau of Labor Statistics of the U.S. Department of Labor. The increase in expenditures from 2003 to 2004 was more than the 2.7 percent rise in the annual average Consumer Price Index (CPI) over this period. Changes in expenditures from 2003 to 2004 for the major components of spending were generally larger than a year earlier. Among the components, the 2004 increases for food (8.3 percent), housing (3.6 percent), apparel (10.7 percent), and healthcare (6.5 percent) were statistically significant. (Average annual expenditures and expenditures for personal insurance and pensions are not strictly comparable to previous data. See "Changes in 2004" on page 2.) Average annual expenditures and characteristics of all consumer units and percent changes, Consumer Expenditure Survey, 2002-2004 _____________________________________________________________________________ Percent change Item 2002 2003 2004 2002-2003 2003-2004 ----------------------------------------------------------------------------- Number of consumer units (000’s) 112,108 115,356 116,282 Income before taxes 1/ $49,430 $51,128 $54,453 Average age of reference person 48.1 48.4 48.5 Average number in consumer unit: Persons 2.5 2.5 2.5 Earners 1.4 1.3 1.3 Vehicles 2.0 1.9 1.9 Percent homeowner 66 67 68 Average annual expenditures $40,677 $40,817 $43,395 0.3 6.3 Food 5,375 5,340 5,781 -.7 8.3 At home 3,099 3,129 3,347 1.0 7.0 Away from home 2,276 2,211 2,434 -2.9 10.1 Housing 13,283 13,432 13,918 1.1 3.6 Apparel and services 1,749 1,640 1,816 -6.2 10.7 Transportation 7,759 7,781 7,801 .3 .3 Health care 2,350 2,416 2,574 2.8 6.5 Entertainment 2,079 2,060 2,218 -.9 7.7 Personal insurance and pensions 3,899 4,055 4,823 4.0 18.9 Other expenditures 4,182 4,094 4,461 -2.1 9.0 _____________________________________________________________________________ 1/ Income values are derived from "complete income reporters" only prior to 2004. Consumer Expenditure Survey (CE) data include the expenditures and income of consumers, as well as the demographic characteristics of those consumers. Tables with more expenditure detail than is shown in this newspress release will be available November 30, 2005 by accessing the BLS website (http://www.bls.gov/cex). Tables show 2004 CE data by standard classifications that include income quintile, income class, age of reference person, size of consumer unit, number of earners, composition of consumer unit, region of residence, housing tenure, type of area (urban-rural), race, Hispanic origin, occupation, and education. Other tables available on the website include expenditures by age, region, size, or gender cross-tabulationsed by income before taxes and other demographic variables. Historical tables back to 1984 and tabulations by Metropolitan Statistical Areas (MSA) are also available. Other available data A forthcoming annual report will include a brief discussion of expenditure changes in 2004 and tables with data classified by the standard characteristics listed above. Detailed reports that include CE data are published at two-year intervals and include the standard tabulations and cross-tabulations at the same level of expenditure detail as shown on the website. MSA tables are also included. All data published in the reports and posted to the website are integrated from the two CE components--the quarterly Interview Survey and weekly Diary Survey. Other survey information available on the Internet includes answers to frequently asked questions, a glossary, order forms for survey products, and analytical articles that use CE data. Beginning with the 2000 data, standard error tables for integrated data are available on the BLS site. The 2004 Diary and Interview microdata soon will be available on CD-ROM. The Interview files contain expenditure data in two different formats: MTAB files that present monthly values in an item-coding framework based on the CPI pricing scheme, and EXPN files that organize expenditures by the section of the Interview questionnaire in which they are collected. Expenditure values on EXPN files cover different time periods depending on the specific questions asked, and the files also contain relevant non-expenditure information not found on the MTAB files. The CE microdata files are available on CD-ROM back to 1990 and for selected earlier years. Beginning with the 1996 microdata on CD-ROM, files are available in a choice of either ASCII format or PC SAS datasets. (See www.bls.gov/cex/csxmicro.htm for details.) Changes in 2004 Beginning in 2004 the Consumer Expenditure Survey includes imputed income estimates. While the imputed data provide more reliable income estimates because they allow the inclusion of households for which income data are not otherwise available, income data from 2004 on will not be strictly comparable to earlier years. This change also affects those expenditure items in the personal insurance and pensions component that are derived from income data. The increase in personal insurance and pensions in 2004 was largely due to increases in deductions for Social Security, which are computed from wage and salary amounts. As a result of the changes in 2004, income data, personal insurance and pensions, and average annual expenditures are not strictly comparable to data from previous years. For further information, contact the Division of Consumer Expenditure Surveys, Office of Prices and Living Conditions, Bureau of Labor Statistics, 2 Massachusetts Ave., N.E., Washington, DC 20212-0001 or call 202-691-6900. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202- 691-5200; TDD message referral phone number: 1-800-877-8339.