Consumer units in the Minneapolis-St. Paul, Minn.-Wis., metropolitan area spent an average of $66,678 per year in 2012-2013, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that this figure was 30 percent higher than the $51,299 average expenditure level for a typical household in the United States. Although households in the Minneapolis area spent significantly more than the U.S. average, they allocated their dollars similarly among most of the eight major categories, with only one exception. The share of expenditures for food, which accounted for 11.3 percent of a typical household’s budget in the Minneapolis area, was significantly less than the nationwide average of 12.9 percent. (See chart 1 and table 1.) 

As noted, the portion of a Minneapolis consumer unit’s budget spent on food, 11.3 percent, was significantly below the 12.9-percent U.S. average. Among the 18 metropolitan areas, 6 (including Minneapolis) had food expenditure shares that were significantly below the nationwide average. (See table 3.)

Households in Minneapolis spent $4,168 or 55.2 percent, of their food dollars on food prepared at home and the remaining 44.8 percent ($3,386) on food prepared away from home, such as restaurant meals, carry-out, board at school, and catered affairs. In comparison, the typical U.S. household spent 59.8 percent of its food budget on food prepared at home and 40.2 percent on food prepared away from home.

As noted, Minneapolis-St. Paul is 1 of 18 metropolitan areas nationwide for which Consumer Expenditure Survey (CE) data are available. Metropolitan area CE data and that for the four geographic regions of the United States are available on our Web site at https://www.bls.gov/cex/tables.htm. Metropolitan area CE news releases are available at https://www.bls.gov/regions/subjects/consumer-spending.htm.

Additional Information

Data contained in this release are from the CE, which is conducted on an ongoing basis by the U.S. Census Bureau for the BLS. The CE data in this release were averaged over a two-year period, 2012 and 2013. CE data are available for the nation, the 4 geographic regions of the country, and 18 metropolitan areas. The metropolitan area discussed in this release is Minneapolis-St. Paul, Minn.-Wis., which is comprised of Anoka, Benton, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright Counties in Minnesota; and Pierce and St. Croix Counties in Wisconsin.

The survey consists of two components, a diary or recordkeeping survey, and an interview survey. The integrated data from the BLS Diary and Interview Surveys provide a complete accounting of consumer expenditures and income, which neither survey component alone is designed to do. Due to changes in the survey sample frame, metropolitan area data in this release are not directly comparable to those prior to 1996.

A consumer unit is defined as members of a household related by blood, marriage, adoption, or other legal arrangement; a single person living alone or sharing a household with others but who is financially independent; or two or more persons living together who share responsibility for at least 2 out of 3 major types of expenses – food, housing, and other expenses. The terms household or consumer unit are used interchangeably for convenience.

CE metropolitan area estimates are not comparative cost of living surveys, as neither the quantity nor the quality of goods and services has been held constant among areas. Differences may result from variations in demographic characteristics such as consumer unit size, age, preferences, income levels, etc. However, expenditure shares, or the percentage of a consumer unit’s budget spent on a particular category, can be used to compare spending patterns across areas. Sample sizes for the metropolitan areas are much smaller than for the nation, so the U.S. estimates and year-to-year changes are more reliable than those for the metropolitan areas. Users should also keep in mind that prices for many goods and services have changed since the survey was conducted.

Expenditure shares for housing and transportation that are above or below that for the nation after testing for significance at the 95-percent confidence interval are also identified in charts 2 and 3 for the 18 metropolitan areas surveyed.

A value that is statistically different from another does not necessarily mean that the difference has economic or practical significance. Statistical significance is concerned with our ability to make confident statements about a universe based on a sample. It is entirely possible that a large difference between two values is not significantly different statistically, while a small difference is, since both the size and heterogeneity of the sample affect the relative error of the data being tested.

For additional technical and related information, see www.bls.gov/opub/hom/cex/home.htm.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 800-877-8339.

Table 1. Percent distribution of average annual expenditures, United States and Minneapolis-St. Paul metropolitan area, Consumer Expenditure Survey, 2012-2013

Category	United States	Minneapolis-St. Paul
Average annual expenditures	$51,299	$66,678*
Percent distribution:	100.0	100.0
Food	12.9	11.3*
Alcoholic beverages	0.9	1.0
Housing	33.2	32.0
Apparel and services	3.3	2.8
Transportation	17.5	18.3
Health care	7.0	7.1
Entertainment	5.0	5.6
Personal care products and services	1.2	1.3
Reading	0.2	0.3*
Education	2.3	2.3
Tobacco products and smoking supplies	0.6	0.5*
Miscellaneous	1.4	1.7
Cash contributions	3.7	4.6
Personal insurance and pensions	10.8	11.2
*Statistically significant difference from the U.S. average at the 95-percent confidence level. Note: Numbers may not add to 100 due to rounding.

Table 2. Consumer unit characteristics and average annual expenditures, United States and Minneapolis-St. Paul metropolitan area, Consumer Expenditure Survey, 2012-2013

Category	United States	Minneapolis-St. Paul
Consumer unit characteristics:
Income before taxes	$64,686	$90,093
Age of reference person	50.1	47.4
Average number in consumer unit:
Persons	2.5	2.5
Children under 18	0.6	0.6
Persons 65 and over	0.3	0.2
Earners	1.3	1.6
Vehicles	1.9	2.4
Percent homeowners	64	71
Average annual expenditures	$51,299	$66,678
Food	6,600	7,554
Food at home	3,949	4,168
Cereals and bakery products	541	582
Meats, poultry, fish, and eggs	854	817
Dairy products	416	458
Fruits and vegetables	741	704
Other food at home	1,397	1,608
Food away from home	2,651	3,386
Alcoholic beverages	448	674
Housing	17,030	21,315
Shelter	9,986	11,918
Owned dwellings	6,082	7,903
Rented dwellings	3,255	2,750
Other lodging	649	1,265
Utilities, fuels, and public services	3,693	3,491
Household operations	1,152	1,587
Housekeeping supplies	627	684
Household furnishings and equipment	1,571	3,635
Apparel and services	1,677	1,861
Transportation	9,001	12,222
Vehicle purchases (net outlay)	3,241	4,961
Gasoline and motor oil	2,683	3,162
Other vehicle expenses	2,537	3,372
Public transportation	540	727
Healthcare	3,594	4,754
Entertainment	2,553	3,728
Personal care products and services	618	847
Reading	106	205
Education	1,172	1,536
Tobacco products and smoking supplies	331	324
Miscellaneous	736	1,103
Cash contributions	1,873	3,059
Personal insurance and pensions	5,559	7,496
Life and other personal insurance	336	330
Pensions and Social Security	5,224	7,167

Table 3. Percent share of average annual expenditures for housing, transportation, and food, United States and 18 metropolitan areas, Consumer Expenditure Survey, 2012-2013

Area	Housing	Transportation	Food
United States	33.2	17.5	12.9
Atlanta	33.4	17.1	12.6
Baltimore	32.5	15.5	11.0*
Boston	32.6	15.6*	13.3
Chicago	35.4*	15.6*	12.7
Cleveland	31.6	18.2	12.8
Dallas	33.5	17.9	12.6
Detroit	30.0*	19.7*	13.5
Houston	33.1	21.0*	12.0
Los Angeles	38.2*	15.4*	13.4
Miami	39.9*	16.2	14.0
Minneapolis	32.0	18.3	11.3*
New York	39.8*	13.5*	11.9*
Philadelphia	35.4*	15.4*	13.7
Phoenix	34.8	18.9	13.6
San Diego	38.2*	15.8	11.5*
San Francisco	35.8*	13.7*	11.9*
Seattle	33.4	15.6	13.0
Washington	35.3	16.7	10.9*
*Statistically significant difference from the U.S. average at the 95-percent confidence level.