With a staggering $18.85 trillion spent in 2023, American consumerism isn't just a habit—it’s the throbbing engine of the nation’s economy.
Key Takeaways
- In 2023, U.S. personal consumption expenditures (PCE) totaled $18.85 trillion, representing 68.2% of GDP
- U.S. consumer spending grew by 2.5% in real terms in 2023 compared to 2022, adjusted for inflation
- Household final consumption expenditure per capita in the U.S. was $55,432 in 2022
- In 2022, average annual expenditures per consumer unit were $72,967, up 9.4% from 2021
- Housing accounted for 32.9% of consumer unit expenditures at $24,000 annually in 2022
- Transportation spending averaged $12,295 per consumer unit in 2022, 16.8% of total
- U.S. retail sales for motor vehicles and parts dealers were $1.47 trillion in 2023
- Food services and drinking places sales hit $943 billion in 2023
- General merchandise stores generated $852 billion in sales in 2023
- U.S. household debt reached $17.5 trillion in Q4 2023
- Credit card debt hit $1.13 trillion in Q4 2023, up 8.4% YoY
- Student loan debt totaled $1.60 trillion in Q4 2023
- 44% of U.S. consumers live paycheck to paycheck in 2023
- 62% of Americans feel financially stressed due to inflation in 2023 surveys
- Impulse buying occurs weekly for 48% of shoppers in 2023
American consumer spending remains huge but is slowing amidst debt and inflation.
Aggregate Spending Levels
- In 2023, U.S. personal consumption expenditures (PCE) totaled $18.85 trillion, representing 68.2% of GDP
- U.S. consumer spending grew by 2.5% in real terms in 2023 compared to 2022, adjusted for inflation
- Household final consumption expenditure per capita in the U.S. was $55,432 in 2022
- U.S. disposable personal income reached $20.1 trillion in 2023, supporting higher consumption levels
- Consumer spending accounted for 70% of U.S. economic growth in Q4 2023
- Real PCE increased by 3.1% annually in 2023, driven by services
- U.S. consumer spending on durable goods fell 0.5% in 2023 amid high interest rates
- Total U.S. retail sales reached $7.22 trillion in 2023
- PCE as a share of GDP was 67.9% in Q1 2024
- U.S. households spent an average of $72,967 per consumer unit in 2022
- Consumer spending growth slowed to 1.8% in Q1 2024 from 3.4% in Q4 2023
- Nominal PCE rose 4.2% in 2023, outpacing inflation of 2.6%
- U.S. consumer spending per capita hit $56,800 in 2023 estimates
- Final sales to private domestic purchasers, including consumption, grew 3.2% in 2023
- Household consumption contributed 2.1 percentage points to GDP growth in 2023
- U.S. PCE deflator increased 2.6% in 2023, indicating moderating inflation pressures on spending
- Total consumer outlays on goods and services were $18.1 trillion in 2022
- Real final sales of domestic product grew 2.4% in 2023, led by consumption
- U.S. personal saving rate averaged 4.0% of disposable income in 2023
- Consumer spending drove 95% of U.S. GDP growth post-2020 recovery
- Nominal personal consumption expenditures increased 9.2% from 2020 to 2022
- U.S. households' share of PCE was 84% in 2023
- PCE growth accelerated to 2.8% in services during 2023
- Total U.S. consumption spending hit a record $19.2 trillion annualized in Q1 2024
- Real PCE per capita rose 2.3% in 2023
- Consumer spending on nondurables increased 3.5% nominally in 2023
- U.S. PCE chain-type price index rose 2.4% YoY in December 2023
- Household final consumption expenditure grew 2.1% in constant prices in 2022
- U.S. consumer outlays supported 2.5 million jobs in retail alone in 2023
- Total PCE for 2023 was revised upward by $100 billion from initial estimates
Aggregate Spending Levels Interpretation
While we managed to power the entire economic engine by spending nearly 70% of our national output, our personal saving rate suggests we’re fueling that engine by running on fumes.
Behavioral and Demographic Insights
- 44% of U.S. consumers live paycheck to paycheck in 2023
- 62% of Americans feel financially stressed due to inflation in 2023 surveys
- Impulse buying occurs weekly for 48% of shoppers in 2023
- 71% of consumers prefer brands with sustainable practices in 2023
- Black Friday shoppers spent average $311 online in 2023
- 56% of Gen Z prioritize experiences over possessions in spending
- Average American checks phone 144 times daily, influencing 30% of purchases
- 67% of consumers influenced by social media in buying decisions 2023
- Holiday spending averaged $902 per person in 2023, up 8%
- 41% of shoppers use coupons or discounts regularly in 2023
Behavioral and Demographic Insights Interpretation
Nearly half the country is anxiously scrolling for coupons between paychecks, yet we still find the energy to impulse-buy the sustainable brands we saw on our phones 144 times a day, proving we're perfectly capable of stressing about money, spending money, and wanting to save the planet all in the same tap.
Consumer Credit and Debt
- U.S. household debt reached $17.5 trillion in Q4 2023
- Credit card debt hit $1.13 trillion in Q4 2023, up 8.4% YoY
- Student loan debt totaled $1.60 trillion in Q4 2023
- Mortgage debt outstanding was $12.25 trillion in Q4 2023
- Auto loan debt reached $1.61 trillion in Q4 2023, up 3.3% YoY
- Household debt service payments as % of disposable income was 9.9% in Q4 2023
- Delinquency rate on credit cards rose to 3.18% in Q4 2023
- Mortgage delinquency rate was 0.62% in Q4 2023
- Auto loan delinquency rate hit 1.64% in Q4 2023
- Total revolving credit grew 7.5% to $1.15 trillion in 2023
- Nonrevolving consumer credit increased 3.1% in 2023
- Credit card balances per borrower averaged $6,501 in Q4 2023
- Average credit card interest rate reached 21.47% in Q1 2024
- U.S. consumer credit outstanding grew $68 billion in December 2023
- Student loan delinquency rate was 7.72% 90+ days past due in Q4 2023
- Household financial obligations ratio was 13.2% in Q4 2023
- Total consumer debt payments hit $1.7 trillion annualized in 2023
- Credit utilization rate averaged 46% in Q4 2023
- Subprime auto loan originations rose 5% in 2023
- Personal bankruptcy filings totaled 418,000 in 2023, down 10% YoY
- Average American household carries $103,358 in debt in 2023
- Millennials hold 40% of total U.S. consumer debt at $6.8 trillion
- Gen Z credit card debt averaged $3,248 per borrower in 2023
- Debt-to-income ratio for U.S. households was 11.3% in Q4 2023
- Buy now, pay later debt reached $45 billion in 2023
- 78 million Americans used BNPL services 4.3 times on average in 2023
Consumer Credit and Debt Interpretation
The American dream now comes with a staggering $17.5 trillion price tag, a mountain of debt where even our optimism is bought on credit with a 21% APR.
Retail and E-commerce Trends
- U.S. retail sales for motor vehicles and parts dealers were $1.47 trillion in 2023
- Food services and drinking places sales hit $943 billion in 2023
- General merchandise stores generated $852 billion in sales in 2023
- Grocery stores sales totaled $1.02 trillion in 2023
- E-commerce sales reached $1.1 trillion in 2023, 15.3% of total retail
- Nonstore retailers sales grew 7.5% to $1.18 trillion in 2023
- Building material and garden equipment sales were $570 billion in 2023
- Gasoline stations sales amounted to $654 billion in 2023
- Health and personal care stores generated $373 billion in 2023
- Clothing and accessories stores sales hit $296 billion in 2023
- Sporting goods, hobby, book, and music stores sales were $106 billion in 2023
- Electronics and appliance stores sales totaled $76 billion in 2023
- Furniture and home furnishings stores generated $132 billion in 2023
- Online-only retailers saw 8.2% growth in Q4 2023 sales
- Total advance monthly retail sales were $704.4 billion in March 2024
- E-commerce penetration rate reached 15.6% of total retail trade in 2023
- Department stores sales declined 8.1% in 2023 to $85 billion
- Warehouse clubs and supercenters sales hit $462 billion in 2023
- Pharmacies and drug retailers generated $566 billion in 2023
- Total retail trade sales increased 3.3% nominally in 2023 over 2022
- Mobile commerce accounted for 50% of e-commerce sales in 2023
- Black Friday 2023 online sales reached $9.8 billion, up 8.1%
- Cyber Monday 2023 e-commerce sales hit $13.3 billion record
- Amazon captured 37.6% of U.S. e-commerce market in 2023
- Walmart e-commerce sales grew 21% to $100 billion in FY2023
Retail and E-commerce Trends Interpretation
While Americans dutifully fueled their bodies ($1.02T on groceries) and social lives ($943B at restaurants), their true devotion was to fueling their cars ($1.47T) and their Amazon carts ($1.1T online), proving the national pastime is a three-car garage filled with delivery boxes.
Spending by Category
- In 2022, average annual expenditures per consumer unit were $72,967, up 9.4% from 2021
- Housing accounted for 32.9% of consumer unit expenditures at $24,000 annually in 2022
- Transportation spending averaged $12,295 per consumer unit in 2022, 16.8% of total
- Food expenditures totaled $8,632 per household in 2022, up 11.4% from prior year
- Healthcare spending reached $5,888 per consumer unit in 2022, 8.1% share
- Entertainment spending was $3,312 annually per household in 2022
- Apparel and services cost $1,945 per consumer unit in 2022, down 2.1% adjusted
- Personal insurance and pensions averaged $10,081 per household in 2022, 13.8%
- Education spending was $1,384 per consumer unit in 2022
- Food at home cost $4,696 per household in 2022, while away from home was $3,936
- Gasoline and motor oil expenditures hit $2,912 per unit in 2022 due to price spikes
- Utilities, fuels, and public services averaged $4,423 annually in 2022
- Alcoholic beverages spending was $576 per consumer unit in 2022
- Tobacco products and smoking supplies cost $350 on average in 2022
- Household furnishings and equipment were $2,212 per unit in 2022
- Personal care products and services averaged $902 in 2022
- Reading materials spending was $134 per household in 2022
- Cash contributions totaled $2,831 per consumer unit in 2022
- Personal interest payments were $1,003 annually in 2022
- Vehicle purchases averaged $10,000 per owner household in 2022
- Owned dwellings shelter costs were $16,332 per unit in 2022
- Rented dwellings averaged $15,696 annually in 2022
- Fees and admissions for entertainment cost $747 in 2022
- Televisions and related equipment spending was $414 per unit in 2022
- Pet purchases and care totaled $1,607 in 2022
Spending by Category Interpretation
We've reached a point where the average American household, while trying to navigate the new cost of just putting a roof over their head and gas in the tank, still managed to spend more on their pets than on their own books, booze, and cigarettes combined.
Sources & References
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