Consumer Expenditures (Annual) News Release

For release: 10:00 a.m. (EDT), Tuesday, August 29, 2017 USDL-17-1175

Technical Information:	(202) 691-6900    CEXInfo@bls.gov    www.bls.gov/cex
Media Contact :	        (202) 691-5902    PressOffice@bls.gov

                    CONSUMER EXPENDITURES--2016

Average expenditures per consumer unit1 for 2016 were $57,311, a 2.4-percent 
increase from 2015 levels, the U.S. Bureau of Labor Statistics reported today. 
During the same period, the Consumer Price Index (CPI-U) rose 1.3 percent2, and 
average pre-tax income per consumer unit increased 7.2 percent to $74,664. In 
2015, spending increased 4.6 percent from 2014 levels.

Six of the eight major components of household spending increased in 2016, as 
shown in table A. Of these, cash contributions expenditures showed the greatest 
percentage increase, 14.4 percent. This was followed by expenditures for personal 
insurance and pensions, rising 7.6 percent, healthcare, rising 6.2 percent, food 
and housing, both rising 2.6 percent, and entertainment, rising 2.5 percent. 
Expenditures on transportation fell 4.8 percent, while expenditures on apparel 
and services fell 2.3 percent.


Spending patterns by selected component

Expenditures on cash contributions rose again this year, up 14.4 percent after 
rising 1.7 percent in 2015.

Personal insurance and pensions expenditures rose 7.6 percent to $6,831. This 
was primarily driven by the 8.2-percent increase in pensions and Social Security 
expenditures. The non-payroll deposits in retirement plans subcomponent was up 
over 26 percent in 2016 and up over 83 percent since 2014. The subcomponent life 
and other personal insurance fell 3.3 percent.

Healthcare expenditures rose 6.2 percent. This was primarily driven by increased 
health insurance expenditures, up 6.1 percent.

Housing expenditures increased 2.6 percent. The largest subcomponent, shelter, 
rose 3.6 percent. The change was driven by rented dwellings, up 6.1 percent. 
Owned dwellings, which includes mortgage interest, property taxes, and 
maintenance, repairs, and insurance increased 1.4 percent.

Expenditures on the discretionary categories of food away from home and 
entertainment continued increasing in 2016, up 4.9 percent and 2.5 percent 
respectively, after increasing 7.9 percent and 4.2 percent in 2015.

Transportation expenditures fell 4.8 percent primarily driven by the 9.1-percent 
decline in vehicle purchases expenditures and the 8.7-percent decline in gasoline 
and motor oil expenditures. Gasoline and motor oil expenditures have declined each 
year since 2012. The second largest subcomponent of transportation, other vehicle 
expenses, which includes finance charges, maintenance, insurance, and 
rentals/leases/licenses, rose 4.6 percent.


Table A. Average expenditures and income of all consumer units and percent
changes for selected components, 2014-16(1)	
________________________________________________________________________________
                                                               Percent change
          Item                     2014     2015     2016    2014-2015 2015-2016
--------------------------------------------------------------------------------
Average income before taxes     $66,877  $69,629  $74,664          4.1       7.2
                                           
Average annual expenditures      53,495   55,978   57,311          4.6       2.4
  Food                            6,759    7,023    7,203          3.9       2.6
    Food at home                  3,971    4.015    4,049          1.1       0.8
    Food away from home           2,787    3,008    3,154          7.9       4.9
  Housing                        17,798   18,409   18,886          3.4       2.6
    Shelter                      10,491   10,742   11,128          2.4       3.6
      Owned dwellings             6,149    6,210    6,295          1.0       1.4
      Rented dwellings            3,631    3,802    4,035          4.7       6.1
  Apparel and services            1,786    1,846    1,803          3.4      -2.3
  Transportation                  9,073    9,503    9,049          4.7      -4.8
    Vehicle purchases             3,301    3,997    3,634         21.1      -9.1
    Gasoline and motor oil        2,468    2,090    1,909        -15.3      -8.7
    Other vehicle expenses        2,723    2,756    2,884          1.2       4.6
  Healthcare                      4,290    4,342    4,612          1.2       6.2
    Health insurance              2,868    2,977    3,160          3.8       6.1
  Entertainment                   2,728    2,842    2,913          4.2       2.5
  Cash contributions              1,788    1,819    2,081          1.7      14.4
  Personal insurance              5,726    6,349    6,831         10.9       7.6
   and pensions                                                           
    Life and personal              
	insurance                   327      333      322          1.8      -3.3  
    Pensions and Social           
        Security                  5,399    6,016    6,509         11.4       8.2
  All other expenditures          3,547    3,845    3,933          8.4       2.3

(1)Subcategories do not sum to 100%.
                                                                        
________________________________________________________________________________

                         

Spending by composition of consumer unit

Consumer Expenditure Survey (CE) data measure how consumers allocate their spending 
among the various components of average annual expenditures. Table B compares the 
shares allocated to selected major expenditure categories by composition of consumer 
unit in 2016. One parent consumer units with at least one child under 18 allocated 
over one-half of their total spending to food and housing, increasing their share for 
both categories from 2015 and reported the highest shares of spending on food and 
housing among the groups studied.

Over 10 percent of total spending for married couple only consumer units went to 
healthcare, over twice as large a share as reported by one parent consumer units 
(5.1 percent). Married couple with children consumer units allocated the highest share 
of all groups to personal insurance and pensions (12.5 percent), while other married 
couple consumer units (those with married couples and persons other than children 
living in the consumer unit) allocated the highest share to transportation 
(18.6 percent).

Table B. Shares of average annual expenditures on selected major components 
by composition of consumer unit, 2016
_____________________________________________________________________________
             Item                  Married    Married     Other
				   couple     couple     married
				    only       with      couple
				             children   consumer
                                                          units 				             
-----------------------------------------------------------------------------
Food                                11.8      12.9       14.5
Housing                             30.5      31.8       30.5 
Transportation                      17.5      17.3       18.6
Healthcare                          10.3       7.3        7.8 
Personal insurance and pensions     11.1      12.5       11.6
           
_____________________________________________________________________________ 
Item                                 One       Single
				   parent,     person
				   at least,  and other
				   one child  consumer         
                                   under 18    units
-----------------------------------------------------------------------------
Food                                14.8      12.4 
Housing                             38.0      36.7
Transportation                      17.0      15.9
Healthcare                           5.1       7.3 
Personal insurance and pensions      7.5       8.9       
           
_____________________________________________________________________________ 



Spending by income quintile

Table C shows the percent change for expenditures by income quintile. Overall
spending increased in all five quintiles, ranging from 1.6 percent in the highest 
quintile to 4.9 percent in the second quintile. Healthcare, personal insurance and 
pensions, food away from home, and housing expenditures increased across all income 
quintiles. Spending on food at home, apparel and services, and entertainment saw 
increases in three of five quintiles. Cash contributions had increases in two of 
five quintiles. Transportation expenditures increased by 5.8 percent and 1.2 percent 
for the lowest and second quintiles, but declined between 3.5 percent and 9.6 
percent for the highest three quintiles.

Table C. Dollar change and percent change in average annual expenditures on 
major components by income quintile, 2015-16
______________________________________________________________________________ 
					Lowest		Second		Third	
	
Item					Dollar Percent	Dollar	Percent	Dollar	
------------------------------------------------------------------------------
Average annual expenditure change:										
Total				        $668	 2.7  $1,707	 4.9   $1,752	
 Food					  95	 2.5	 -44	-0.9	  425	
  At home				   3	 0.1	-158	-4.8	  252	
  Away from home			  92	 7.2	 115	 6.6	  172	
 Housing				 377	 3.8	 720	 5.6	  506	 
 Apparel and services			  84	10.9	  25	 2.2	  217	
 Transportation				 208     5.8      69     1.2     -356 	  
 Healthcare                              226    11.7     105     3.1      301
 Entertainment				-124	-9.7	  45     2.6	  126
 Cash contributions			-154   -21.7	 377	35.7	  -34
 Personal insurance and pensions	  53	 8.9	  26	 1.5      247
 All other expenditures			 -97    -4.9	 385    17.6	  321	

______________________________________________________________________________ 
					Third	Fourth		Highest	

Item					Percent	Dollar	Percent	Dollar	Percent	
------------------------------------------------------------------------------
Average annual expenditure change:										
Total					 3.8    $1,239	  1.9  $1,713	  1.6
 Food					 7.3	   271	  3.3     163	  1.3
  At home			         7.3       193	  4.3	 -117	 -1.8 
  Away from home			 7.3	    78	  2.2	  280	  4.6
 Housing				 3.2	   279	  1.4     626	  1.9
 Apparel and services		        16.6	   -25	 -1.2	 -514	-12.8
 Transportation				-4.0	  -399   -3.5  -1,719	 -9.6
 Healthcare                              7.6       114    2.1     628     8.9 
 Entertainment				 5.7	   358	 11.7	  -31	 -0.5
 Cash contributions			-2.5	     1	  0.0   1,144	 28.0
 Personal insurance and pensions	 6.2       595	  7.8   1,603	  9.1
 All other expenditures			12.0	    45	  1.2	 -189    -2.2
______________________________________________________________________________ 


Other available data

Consumer Expenditure (CE) data include the expenditures and income of consumers, 
as well as the demographic characteristics of those consumers. Tables with more 
expenditure detail are available at www.bls.gov/cex. Published tables provide 2016 
CE data by standard classifications that include income quintile, income decile, 
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 highest education level of any 
member. A generational table, published as an experimental table since 2014, is 
being added as a new standard table this year. It uses the birth year of the 
reference person to categorize consumer units into five generational categories 
defined by the Pew Research Center. These annual tables include means, shares, and 
standard errors. Other tables available on the website include expenditures by age, 
region, size, or gender cross-tabulated by income before taxes and other demographic 
variables. Historical tables back to 1984 and selected metropolitan area tabulations 
are also available.

Future articles in the BLS Beyond the Numbers publication series will highlight recent 
trends in prices and spending in the U.S. economy, and will feature 2016 CE data. 
Recent CE-specific Beyond the Numbers articles provide analyses of topical economic 
issues and long term spending trends, as well as comparisons of CE data to other data 
series (see www.bls.gov/cex/csxwebarticles.htm). Other survey information available on 
the CE website includes answers to frequently asked questions and a glossary of terms. 
Also available are the Interview information booklet and computer assisted personal 
interviewing (CAPI) instrument specifications as well as the Diary survey form and 
information booklet.

The 2016 CE public-use microdata, including Interview Survey data, Diary Survey data, 
and paradata (information about the survey process), are available on the CE website 
for download. The Interview files contain expenditure data in two different formats: 
MTBI 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 MTBI files. The 
public-use microdata for 2016 also includes estimates of state and federal tax 
liabilities. The CE introduced these estimates in 2013 to improve the quality of the
tax data. The tax data collected directly from consumer units during the Interview 
survey are no longer available. CE public-use microdata from 1996 to 2015 are also 
available on the CE website for download. For releases prior to 1996, users can 
continue to purchase USB Flash Drives using the public-use microdata order form 
(see www.bls.gov/cex/csxform.pdf). Information on the methodology used to calculate and 
collect CE data is available at www.bls.gov/cex/ce_methodology.htm. General articles 
and research papers using CE data are in the CE research library at 
www.bls.gov/cex/research_papers/research-paper-catalog.htm.

For further information, contact the Division of Consumer Expenditure Surveys, Office 
of Prices and Living Conditions, Bureau of Labor Statistics at cexinfo@bls.gov or 
(202) 691-6892. Information in this release is available to sensory impaired individuals 
upon request. Voice phone: 202-691-5200; Federal Relay Service: 1 (800) 877-8339.



1 Consumer units include families, single persons living alone or sharing a 
  household with others but who are financially independent, or two or more 
  persons living together who share expenses.

2 This is calculated as the percentage change between the annual average CPI-U 
  for all items for 2016 (240.007) and the annual average CPI-U for all items for 2015 
  (237.017). See CPI Detailed Report, Data for January 2017, Table 24.






Last Modified Date: August 29, 2017