(Image Source: Sharon McCutcheon / Unsplash)
February 2022
The Bureau of Labor Statistics (BLS) recently released the average annual expenditures for households in the United States for 2020. Although incomes increased by 1.8% from 2019 to 2020, spending decreased by 2.7% over the same period, with the average household containing 2.5 people earning a total of $84,352 and spending $61,334 annually.
About 94% of all household expenditures occur in a small number of nearly universal categories, most of which were affected by the pandemic. Among these categories, spending on housing increased by 3.5% to $21,409 when comparing 2019 to 2020, with spending also increasing for personal insurance or pensions (+1.1% to $7,246), and cash contributions (+14.4% to $2,283). During the same period, average household spending decreased for transportation (-8.5% to $9,826), food (-10.4% to $7,316), healthcare (- 0.3% to $5,177), entertainment (-5.8% to $2,912), and apparel or services (-23.8% to $1,434).
Some of the more interesting changes in spending occurred in niche categories that make up the remaining 6% of household expenditures. For example, only 1.5% of participants spent money on outdoor equipment during the study period, yet average spending for all households in this category increased by 440% from 2019 to 2020.
The same phenomena happened for the categories below. Relatively few households spent in these categories, yet their spending pulled the average up by quite a lot. Rank the following niche categories from largest to smallest increase from 2019 to 2020:
A. Computers and computer hardware for nonbusiness use
B. Indoor plants or fresh flowers
C. Lawn and garden equipment
D. Office furniture for home use
E. Outdoor equipment
ANSWER
Answer Order E, D, B, A, C. Average spending on outdoor equipment increased by 440.2%, followed by office furniture for home use (+143.7 percent), indoor plants or fresh flowers (+59.21 percent), computer and computer hardware for nonbusiness use (+41.9 percent), and lawn and garden equipment (+38.8 percent).
In total, the average household spent $197.35 (SE=$126.59) on outdoor equipment, $19.07 (SE=$1.95) on office furniture for home use, $59.21 (SE=$2.93) on indoor plants and fresh flowers, $199.12 (SE=9.94) on computer and computer hardware for nonbusiness use, and $111.18 (SE=29.36) on lawn and garden equipment.
Only 1.51% of participants in the study bought outdoor equipment, 1.81% bought office furniture, 13.98% bought indoor plants or fresh flowers, 6.86% bought computers and computer hardware for nonbusiness use, and 1.91% bought lawn and garden equipment.
Source:
Bureau of Labor Statistics (2022). Consumer Expenditures in 2020.
