While we navigate a sea of conflicting economic signals—from splurging on $1.1 trillion in dining out to stressing over $1.13 trillion in credit card debt—the modern American consumer is a fascinating portrait of resilience and contradiction, a reality we’ll explore by unpacking the latest spending, debt, and sentiment data.
Key Takeaways
- In 2023, U.S. consumer spending on food at home reached $1.2 trillion, representing 7.8% of total personal consumption expenditures
- The average U.S. household spent $8,289 on housing in 2022, accounting for 33% of total expenditures
- Consumer outlays on apparel and services totaled $438 billion in 2023, up 4.2% from 2022
- The U.S. Consumer Confidence Index stood at 98.4 in May 2024, down from 102.0 in April, reflecting mixed sentiment on business conditions
- 68% of consumers reported feeling optimistic about their personal finances in Q1 2024, up 3% from Q4 2023
- Consumer sentiment index from University of Michigan was 69.1 in June 2024, indicating ongoing concerns over inflation
- In 2023, 38% of U.S. population aged 18-34 were millennials driving 45% of consumer purchases
- Baby boomers (55+) accounted for 52% of U.S. luxury goods spending in 2023
- Gen Z (18-24) represented 21% of online shoppers with 2.5x higher mobile usage in 2023
- E-commerce sales reached $1.1 trillion in U.S. 2023, 15.2% of total retail
- 80% of U.S. online shoppers used mobile devices for purchases in 2023
- Amazon captured 37.6% of U.S. e-commerce market share in 2023
- Total U.S. household debt reached $17.5 trillion in Q1 2024, up 1.2% QoQ
- Credit card debt hit $1.13 trillion in Q1 2024, highest since 2011, averaging $6,501 per borrower
- Student loan balances totaled $1.61 trillion for 42.6 million borrowers in Q1 2024
Despite high inflation, American consumers are spending more but carrying record household debt.
Consumer Confidence and Sentiment
- The U.S. Consumer Confidence Index stood at 98.4 in May 2024, down from 102.0 in April, reflecting mixed sentiment on business conditions
- 68% of consumers reported feeling optimistic about their personal finances in Q1 2024, up 3% from Q4 2023
- Consumer sentiment index from University of Michigan was 69.1 in June 2024, indicating ongoing concerns over inflation
- 42% of U.S. consumers planned to increase spending in 2024, per Deloitte survey
- The Conference Board Expectations Index fell to 71.4 in May 2024, signaling recession fears among consumers
- 55% of consumers expressed confidence in job market stability in 2024 NPR/PBS poll
- U.S. consumer optimism hit 77.5 on the CNBC index in Q2 2024, highest since 2022
- 37% of consumers anticipated higher inflation in next 12 months per March 2024 Fed survey
- PYMNTS Consumer Sentiment Tracker showed 48% positive view on economy in April 2024
- 61% of global consumers felt financially secure in 2023 PwC survey, U.S. at 58%
- U.S. consumer confidence rebounded 20% in present situation index to 141.3 in May 2024
- 52% of consumers reported reduced spending due to economic uncertainty in 2024 Edelman
- Michigan sentiment preliminary June 2024 at 65.6, down amid election concerns
- 45% of U.S. adults optimistic about 2024 economy per Ipsos poll January 2024
- Consumer comfort index from Bloomberg rose to 70.1 in June 2024
- 39% of consumers feared recession in Q2 2024 per Bankrate survey
- U.S. consumer sentiment improved to 78.8 on Conference Board measure in June 2024 prelim
- 67% of millennials confident in finances vs 49% boomers in 2024 EY survey
- Expectations index at 72.8 in June 2024 Michigan final
- 51% consumers plan major purchases in 2024 despite caution, per Numerator
- Consumer confidence gap widened to 25 points between rich and poor in 2024
- 44% reported better personal finances year-over-year in May 2024 Conference Board
- U.S. consumer misery index at 22.5% in 2024, blending unemployment and inflation
- 62% of consumers somewhat/very confident in savings per 2024 Northwestern Mutual
- Sentiment index current conditions at 88.1 in June 2024 Michigan
- 73% of high-income consumers optimistic vs 41% low-income in 2024 Deloitte
Consumer Confidence and Sentiment Interpretation
The American consumer is currently a walking paradox, feeling personally prosperous yet collectively pessimistic, like someone confidently ordering a lavish meal while nervously checking their wallet and the exit.
Consumer Debt and Financial Health
- Total U.S. household debt reached $17.5 trillion in Q1 2024, up 1.2% QoQ
- Credit card debt hit $1.13 trillion in Q1 2024, highest since 2011, averaging $6,501 per borrower
- Student loan balances totaled $1.61 trillion for 42.6 million borrowers in Q1 2024
- Mortgage debt stood at $12.44 trillion in Q1 2024, with delinquency rate 0.62%
- Auto loan debt reached $1.61 trillion, average balance $23,029 per borrower in 2024
- Personal loan debt averaged $16,493, with 46 million borrowers in Q1 2024
- U.S. consumer delinquency rate rose to 3.2% on credit cards in Q1 2024
- Debt payment as % of disposable income was 9.7% in Q1 2024, lowest since 2000
- 78% of Americans live paycheck to paycheck per 2024 LendingClub survey
- Average consumer credit limit utilization hit 47% in Q1 2024
- Subprime auto loan delinquencies reached 7.1% 60+ days past due in Q1 2024
- Household net worth grew to $156.2 trillion but debt service ratio 11.8% in Q1 2024
- 43% of credit card holders carried balance >$1,000 in 2024
- Total revolving debt up 5.5% YoY to $1.134 trillion March 2024
- Median household debt $48,500 excluding mortgage in 2023 SCF data
- Buy now pay later debt outstanding $60 billion with 25% users behind in 2024
- Credit scores averaged 715 in 2024, down from 718 in 2023 per FICO
- 11 million consumers have debt in collections averaging $1,120 in 2024
- Household debt-to-GDP ratio 74.5% in Q1 2024
- Non-housing debt per capita $37,650 in 2024 estimates
Consumer Debt and Financial Health Interpretation
The American dream now comes with a sobering price tag: a collective appetite for debt that’s ballooning to record highs, while the champagne of rising net worth is increasingly paired with the bitter tonic of delinquencies and paycheck-to-paycheck living.
Consumer Spending Habits
- In 2023, U.S. consumer spending on food at home reached $1.2 trillion, representing 7.8% of total personal consumption expenditures
- The average U.S. household spent $8,289 on housing in 2022, accounting for 33% of total expenditures
- Consumer outlays on apparel and services totaled $438 billion in 2023, up 4.2% from 2022
- U.S. consumers allocated 16.5% of their budgets to transportation expenses averaging $9,826 per household in 2022
- Spending on entertainment by American households averaged $3,312 annually in 2022, a 12% increase from 2021
- In 2023, healthcare spending by consumers hit $577 billion, or 8.1% of PCE
- Average annual spending on personal care products was $902 per U.S. household in 2022
- U.S. consumer spending on education services reached $171 billion in 2023
- Households spent an average of $2,914 on utilities in 2022, comprising 11.7% of non-housing costs
- Alcoholic beverages consumption expenditure averaged $577 per household in 2022
- In 2023, U.S. PCE on recreational goods and vehicles was $284 billion, up 5.1%
- Average spending on tobacco products was $335 per smoking household in 2022
- Consumer spending on reading materials averaged $127 annually per household in 2022
- U.S. households spent $1,614 on cash contributions in 2022
- Personal care services expenditure averaged $572 per household in 2022
- In 2023, food away from home spending totaled $1.1 trillion, 12.3% of PCE
- Average miscellaneous expenditure was $1,036 per U.S. household in 2022
- U.S. consumer spending on furniture and furnishings was $152 billion in 2023
- Households spent $2,563 on vehicle purchases average in 2022
- Spending on legal services averaged $438 per household in 2022
- In 2023, PCE for pharmaceuticals was $465 billion
- Average pet-related spending was $1,381 per pet-owning household in 2022
- U.S. consumers spent $76 billion on jewelry in 2023
- Household spending on shoes averaged $379 in 2022
- In 2023, sporting goods sales reached $92 billion, up 3.5%
- Average spending on toys and games was $412 per household with children in 2022
- U.S. PCE on motor vehicle parts was $68 billion in 2023
- Households spent $1,240 on gasoline average in 2022
- Consumer spending on cosmetics was $18 billion in 2023
- Average insurance premiums paid by households were $11,746 in 2022
Consumer Spending Habits Interpretation
The data reveals that the American household, while dutifully budgeting for shelter, sustenance, and healthcare, remains resolutely committed to finding room in its finances for pleasures, pets, and a sobering amount of insurance premiums.
Demographic Consumer Trends
- In 2023, 38% of U.S. population aged 18-34 were millennials driving 45% of consumer purchases
- Baby boomers (55+) accounted for 52% of U.S. luxury goods spending in 2023
- Gen Z (18-24) represented 21% of online shoppers with 2.5x higher mobile usage in 2023
- Hispanic consumers grew to 19% of U.S. population, spending $2.8 trillion annually in 2023
- Women made 80% of consumer purchasing decisions, influencing $20 trillion globally in 2023
- Urban millennials spent 28% more on dining out than suburban peers in 2023
- African American buying power reached $1.6 trillion in 2023, up 10% YoY
- Seniors (65+) comprised 17% of population but 25% of healthcare spending in 2023
- Gen Z parents spent 15% more on organic foods averaging $450/month in 2023
- Asian Americans (7% population) had highest median income $98,174 driving premium purchases in 2023
- Rural consumers aged 25-44 spent 22% more on vehicles than urban in 2023
- LGBTQ+ consumers (5-7% U.S.) spent $1.2 trillion with 20% higher brand loyalty in 2023
- Single-person households (28% total) averaged $45,000 spending vs $60,000 families in 2023
- Low-income (<$50k) made 40% of discount store purchases in 2023
- High-income (>$100k) households drove 35% of travel spending $250B in 2023
- Gen X (45-60) controlled 31% of U.S. wealth, spending heavily on home improvements in 2023
- College-educated consumers spent 50% more on tech gadgets averaging $1,200/year in 2023
- Empty nesters (55-64) spent $15,000 avg on leisure travel in 2023
- Young families (25-34 with kids) allocated 18% budget to childcare $12,000 avg in 2023
- Boomers in suburbs spent 2x more on gardening products $2,500 avg in 2023
Demographic Consumer Trends Interpretation
A consumer landscape emerges where millennials wield their credit cards like scepters, boomers treat luxury brands as a second language, Gen Z shops from their beds, and every other demographic proves that the real national pastime is spending money in wildly specific, statistically significant ways.
E-commerce and Digital Consumption
- E-commerce sales reached $1.1 trillion in U.S. 2023, 15.2% of total retail
- 80% of U.S. online shoppers used mobile devices for purchases in 2023
- Amazon captured 37.6% of U.S. e-commerce market share in 2023
- Digital video game sales hit $59.5 billion globally, U.S. 48% share in 2023
- 62% of consumers used buy-now-pay-later services online, totaling $96B in 2023 U.S.
- Streaming services revenue reached $47 billion in U.S. 2023, 85% subscription-based
- Social commerce sales grew 32% to $67 billion in U.S. 2023
- 57% of Gen Z made purchases via TikTok/Instagram in 2023
- U.S. online grocery sales surged 13% to $100 billion in 2023
- Voice commerce transactions expected $40 billion via smart speakers in 2023 U.S.
- 72% of consumers read reviews before online buys, influencing 93% decisions in 2023
- Cross-border e-commerce hit $785 billion globally, U.S. imports 25% in 2023
- Mobile app downloads for shopping apps reached 2.9 billion in U.S. 2023
- Subscription e-commerce grew 18% to $120 billion U.S. revenue 2023
- 41% abandoned carts due to high shipping costs in 2023 online surveys
- Live-stream shopping sales $50 billion projected U.S. 2023
- AR try-on features boosted conversion 94% for beauty e-comm in 2023
- U.S. online luxury sales $68 billion in 2023, 20% growth
- Email marketing drove 42% of e-commerce revenue in 2023 U.S.
- Headless commerce platforms grew 25% adoption among retailers 2023
- Sustainable product searches online up 65% YoY to 2023 peak
E-commerce and Digital Consumption Interpretation
The numbers paint a portrait of a U.S. consumer who is now almost entirely a digital creature, buying nearly everything from groceries to games on their phone, often with borrowed money, guided by reviews, tempted by influencers, and constantly expecting a faster, more seamless, and even virtual try-on experience—all while being relentlessly marketed to via email.
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