Household spending for July 2019 through June 2020 down 1.1 percent, compared with prior 12 months

Average household spending for July 2019 to June 2020 was $61,749, down 1.1 percent compared with the July 2018 to June 2019 average. Over the same period, miscellaneous spending decreased 15.5 percent, the largest percentage decrease among major components of spending. Miscellaneous spending includes safety deposit box rentals, checking account fees and other bank service charges, credit card memberships, legal fees, accounting fees, funerals, cemetery lots, union dues, occupational expenses, expenses for other properties, and finance charges other than those for mortgages and vehicles.

Apparel and services spending decreased 14.0 percent to $1,598 for July 2019 to June 2020, after increasing 0.5 percent during the previous midyear period, July 2018 to June 2019. Spending on entertainment decreased by 10.1 percent to $2,864, driven by a 30.1-percent drop in fees and admissions. Spending on food away from home decreased 12.8 percent, compared with an increase of 4.2 percent on food at home.

Compared with average spending for the period from July 2018 to June 2019, cash contributions increased 9.9 percent for July 2019 to June 2020. Cash contributions involve a wide array of giving and financial obligations such as charitable contributions, support for college students, child support, alimony, and other gifts of cash and financial instruments to individuals and organizations not part of the household.

Healthcare spending rose 3.1 percent to $5,204 for July 2019 through June 2020 compared to a 2.5-percent increase in the prior midyear period. The largest changes in components of healthcare were a 4.8-percent increase in health insurance spending and a 7.5-percent decrease in average medical supplies spending.

These data come from the Consumer Expenditure Surveys. Data reflect the early months of the COVID-19 pandemic. The midyear average is an average of four quarters since July 2019, only one (April-June 2020) of which was fully affected by the COVID-19 pandemic. To learn more, see “Consumer Expenditures Midyear Update — July 2019 through June 2020.”