While U.S. consumer spending soared to a staggering $18.85 trillion in 2023, powering nearly 70% of the economy, the real story is found in the shifting priorities of who is spending, where, and on what.
Key Takeaways
- In 2023, U.S. personal consumption expenditures (PCE) reached $18.85 trillion, marking a 6.5% increase from 2022
- U.S. consumer spending accounted for 68.2% of GDP in 2023, up from 67.9% in 2022
- Real PCE growth was 2.5% in 2023 after adjusting for inflation, driven by services spending
- PCE on housing and utilities was $3.42 trillion in 2023, 18.1% of total PCE
- Food and beverage spending for off-premises consumption hit $1.58 trillion in 2023
- Healthcare services PCE was $2.89 trillion in 2023, growing 7.8%
- Households earning $100k+ spent 32% more on travel than average in 2023
- Millennials (ages 27-42) accounted for 35% of total U.S. consumer spending in 2023
- Gen Z spending grew 18% YoY to $419 billion in 2023
- Northeast U.S. consumer spending per capita was $62,340 in 2023, highest regionally
- California retail sales totaled $852 billion in 2023, 11.5% of national total
- Southern states saw 7.2% PCE growth in 2023 vs. 5.8% national average
- PCE expected to grow 2.4% in real terms in 2024
- Consumer spending forecast to reach $20.1 trillion by 2025
- Durable goods spending projected to rise 3.2% in 2024
U.S. consumer spending grew steadily in 2023, driven significantly by services and housing.
Category Breakdowns
1PCE on housing and utilities was $3.42 trillion in 2023, 18.1% of total PCE
Verified2Food and beverage spending for off-premises consumption hit $1.58 trillion in 2023
Verified3Healthcare services PCE was $2.89 trillion in 2023, growing 7.8%
Verified4Motor vehicle and parts spending totaled $1.42 trillion in 2023, up 12.4%
Directional5Gasoline and other energy goods PCE was $0.48 trillion in 2023
Single source6Recreation services spending reached $0.92 trillion in 2023, 4.9% growth
Verified7Financial services and insurance PCE was $1.76 trillion in 2023
Verified8Apparel and footwear spending totaled $0.42 trillion in 2023, down 1.2%
Verified9Furniture and household equipment PCE was $0.68 trillion in 2023, up 5.3%
Directional10Restaurant and hotel meals PCE hit $1.05 trillion in 2023, 9.2% increase
Single source11Household final consumption expenditure on food was 12.8% of total in 2023 OECD data for U.S.
Verified12U.S. consumers spent 8.7% of disposable income on transportation in 2023
Verified13Entertainment spending averaged $2,912 per household in 2023
Verified14Personal care products and services PCE was $0.31 trillion in 2023
Directional15Education services spending totaled $0.22 trillion in 2023
Single source16PCE on furnishings up 6.5% to $0.38 trillion in 2023
Verified17Alcoholic beverages PCE was $0.15 trillion in 2023
Verified18Tobacco products spending $0.08 trillion in 2023
Verified19Clothing and footwear nondurables $0.24 trillion in 2023
Directional20Drugs and sundries PCE $0.52 trillion, up 8.1% in 2023
Single source21Household utilities $0.72 trillion in 2023 PCE
Verified22Transportation services $0.61 trillion in 2023
Verified23Net foreign travel PCE $0.18 trillion in 2023
Verified24Average household spent $9,239 on housing in 2023
Directional25Transportation averaged $10,961 per consumer unit in 2023
Single source26Food spending $8,798 average household 2023
VerifiedCategory Breakdowns Interpretation
Despite our best efforts at self-care and leisure, the cold, hard math of American life dictates that we are mostly just expensive vehicles driving to overpriced homes for costly meals while worrying about our even costlier health.
Demographic Segments
1Households earning $100k+ spent 32% more on travel than average in 2023
Verified2Millennials (ages 27-42) accounted for 35% of total U.S. consumer spending in 2023
Verified3Gen Z spending grew 18% YoY to $419 billion in 2023
Verified4Households with income under $50k spent 31% of budget on housing in 2023
Directional5Baby Boomers controlled 41.6% of U.S. spending power at $8.7 trillion in 2023
Single source6Urban households spent 15% more on dining out than rural in 2023
Verified7Women drove 75% of apparel spending decisions in 2023
Verified8High-income households ($200k+) spent $28,456 on food away from home annually in 2023
Verified9Hispanic consumers spending power reached $3.2 trillion in 2023, up 9%
Directional10Single-person households spent 22% of income on apparel in 2023
Single source11Consumers aged 55+ spent $4,200 on healthcare annually in 2023 average
Verified12Low-income families (<$30k) allocated 42% to food and housing combined in 2023
Verified13College-educated consumers spent 28% more on education services in 2023
Verified14African American buying power was $1.8 trillion, 9% of total spending in 2023
Directional15Families with children under 18 spent $12,450 on apparel per year in 2023
Single source16Retired households spending on recreation up 14% to $3,800 average in 2023
Verified17Households aged 25-34 spent 2.4% of income on tobacco vs. 0.8% average in 2023
Verified18Top 20% income quintile spent $145,320 total average in 2023
Verified19Bottom quintile spent 35.2% on housing, highest share in 2023
Directional20Married couples spent $82,450 annually vs. $48,210 singles in 2023
Single source21Asian households spent $12,840 on food, highest demographic in 2023
Verified22Renters spent 42% more on transportation than owners in 2023
Verified2365+ age group saved 12.4% of income vs. negative for under 25 in 2023
Verified24Professional households spent $4,500 on education average 2023
Directional25Childless couples spent 18% on entertainment vs. 12% with kids 2023
Single sourceDemographic Segments Interpretation
While millennials and Gen Z grab the spending headlines, the real plot twist is that everyone, from high-earners splurging on travel to low-income families squeezed by housing, is essentially just funding their own version of survival—or, in the case of retirees enjoying more fun, their well-earned revenge on adulthood.
National Totals
1In 2023, U.S. personal consumption expenditures (PCE) reached $18.85 trillion, marking a 6.5% increase from 2022
Verified2U.S. consumer spending accounted for 68.2% of GDP in 2023, up from 67.9% in 2022
Verified3Real PCE growth was 2.5% in 2023 after adjusting for inflation, driven by services spending
Verified4Monthly PCE for December 2023 was $15,924.5 billion at seasonally adjusted annual rate
Directional5U.S. household final consumption expenditure per capita was $57,248 in 2023
Single source6Consumer spending on goods rose 4.1% in 2023 to $6.72 trillion
Verified7Services PCE increased by 7.2% to $12.13 trillion in 2023
Verified8Annual PCE growth averaged 2.3% from 2019-2023
Verified9Nominal PCE per capita grew 5.8% year-over-year in Q4 2023
Directional10U.S. retail sales totaled $7.41 trillion in 2023, up 2.9% from 2022
Single source11E-commerce sales reached $1.12 trillion in 2023, 15.1% of total retail
Verified12In 2023, U.S. PCE on durable goods was $4.12 trillion, 21.8% of total
Verified13Nondurable goods PCE totaled $2.60 trillion in 2023
Verified14Services dominated PCE at 64.3% share in 2023
Directional15December 2023 PCE growth was 0.4% month-over-month
Single source16PCE price index rose 2.6% YoY in December 2023
Verified17Consumer spending contributed 2.1 percentage points to GDP growth in 2023
Verified18U.S. households saved 3.8% of disposable income in 2023
Verified19Credit card spending hit $1.15 trillion in 2023, up 8.2%
DirectionalNational Totals Interpretation
It seems Americans decided in 2023 that their therapy sessions, streaming subscriptions, and Amazon orders were non-negotiable pillars of the economy, quietly financing growth while their savings accounts whispered in protest.
Regional Differences
1Northeast U.S. consumer spending per capita was $62,340 in 2023, highest regionally
Verified2California retail sales totaled $852 billion in 2023, 11.5% of national total
Verified3Southern states saw 7.2% PCE growth in 2023 vs. 5.8% national average
Verified4New York metro area spending on financial services was $210 billion in 2023
Directional5Midwest households spent 10% less on motor vehicles than coasts in 2023
Single source6Texas consumer spending grew 8.4% to $1.2 trillion in 2023
Verified7Florida PCE on recreation services hit $85 billion in 2023
Verified8West region food spending per capita $4,210 in 2023, highest nationally
Verified9Rural areas spending on healthcare 12% higher per capita than urban in 2023
Directional10Pacific division retail e-commerce sales $180 billion in 2023
Single source11Great Lakes states saw 3.1% decline in apparel spending in 2023
Verified12Southeast PCE growth led by housing at 9.1% in 2023
Verified13Mountain states recreation spending up 11% to $45 billion in 2023
Verified14New England healthcare spending per capita $8,950 in 2023
Directional15Nevada led states with 72.3% spending-to-income ratio in 2023
Single source16Midwest PCE per capita $51,280 lowest regionally in 2023
Verified17Los Angeles metro PCE $950 billion in 2023
Verified18Plains states food spending per capita $3,890 in 2023
Verified19Southwest utilities spending up 11% due to heat in 2023
Directional20Boston metro healthcare PCE $120 billion 2023
Single source21Rural South spending on vehicles 15% higher than urban 2023
Verified22Alaska highest per capita spending $75,400 in 2023
Verified23Chicago retail sales $112 billion 2023
Verified24Hawaii PCE growth 9.8% tourism-driven in 2023
DirectionalRegional Differences Interpretation
A reading of America's economic engine reveals that the coasts are buying the finer things while the South is buying more of everything, the middle is quietly economizing, and rural areas are paying more just to get by, proving that location dictates not just lifestyle but also financial fate.
Trends and Projections
1PCE expected to grow 2.4% in real terms in 2024
Verified2Consumer spending forecast to reach $20.1 trillion by 2025
Verified3Durable goods spending projected to rise 3.2% in 2024
Verified4Services PCE growth slowing to 4.1% in 2024 from 7.2% in 2023
Directional5Retail sales projected at 3.5% growth in 2024 to $7.67 trillion
Single source6E-commerce share expected to hit 20% of retail by 2026
Verified7Housing spending to increase 5.8% annually through 2028
Verified8Food-at-home spending flat at 1.2% growth projected for 2024
Verified9Healthcare PCE forecast to grow 5.9% per year to 2027
Directional10Auto sales and spending projected up 4.7% in 2024
Single source11Travel spending to surge 6.8% in 2024 to $1.3 trillion
Verified12Apparel spending recovery to 2.1% growth in 2024
Verified13Energy goods spending down 2.3% projected for 2024
Verified14Gen Z spending power to double to $12 trillion by 2034
Directional15Online grocery sales to reach 22% market share by 2025
Single source16Consumer confidence index averaged 68.5 in 2023, impacting spending
Verified17Luxury goods spending projected 4.5% CAGR to 2028
Verified18Sustainable product spending up 71% since 2019, to continue 2024
Verified19Digital payments to comprise 55% of spending by 2027
Directional20Inflation-adjusted PCE to grow 1.8% in 2025
Single source21Home entertainment spending +12% post-pandemic projection 2024
Verified22Boomers spending peak expected 2026 at 45% share
Verified23Grocery delivery spending to $250 billion by 2027
VerifiedTrends and Projections Interpretation
The data paints a picture of a consumer who is cautiously opening their wallet, splurging on travel and cars while pinching pennies on energy and groceries, all while Gen Z lurks in the wings with a future fortune, ready to buy everything online in a more sustainable way.
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