What Are We Buying Now?

A new report from the Bureau of Labor Statistics examines how spending patterns have changed over the last 25 years. Based on inflation-adjusted expenditure data from 1986 and 2010, the report shows that the proportions of spending across expenditure categories have changed dramatically for U.S. consumers. While we often hear people complain about the cost of food or transportation, homeowners today actually spend 14 percent less on food and 22 percent less on transportation as compared to 25 years ago. However, when spending decreases in some categories, it must necessarily increase in others. Expenditures on health insurance grew the most with an increase of 145 percent, but, to keep the amount in perspective, it only amounted to 4 percent of total expenditures. The largest expenditure category was housing, which accounted for 33 percent of spending for homeowners and 38 percent of spending for renters. The share of expenditures going to housing grew by 11 percent for homeowners and 16 percent for renters over the last 25 years.

The full report can be found here.

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