2020 Consumer Expenditures Surveys — 2021-09-09

Average annual expenditures for all consumer units(1) in 2020 were $61,334, a 2.7-percent decrease from 2019, the U.S. Bureau of Labor Statistics reported today. (See table A.) During the same period, the Consumer Price Index (CPI-U) rose 1.2 percent, and average income before taxes increased 1.8 percent. Nine of the fourteen major components of household spending decreased during 2020. (See table A.) The largest decline in spending for these categories was apparel and services (-23.8 percent), followed by personal care products and services (-17.8 percent). The 23.9-percent increase in expenditures for reading was the largest percentage increase among all major components, followed by a 14.4-percent rise in cash contributions spending, a 3.5-percent rise in housing, and a 1.1-percent rise in personal insurance and pensions. The onset of the COVID-19 pandemic in 2020 impacted spending behavior among consumer units. Stay-at-home orders affected expenditures for retail outlets, entertainment venues, and even transportation providers, as those working from home ceased commuting.