December 04, 2002 (The Editor’s Desk is updated each business day.)

Spending drops on apparel in 2001

Average annual expenditures per consumer unit rose 3.9 percent in 2001, following increases of 2.8 percent in 2000 and 4.1 percent in 1999. The increase in expenditures from 2000 to 2001 was more than the 2.8 percent annual average rise in the Consumer Price Index (CPI) over this period.

[Chart data—TXT]

The changes in expenditures from 2000 to 2001 varied among the major components of spending and are not strictly comparable to previous data for some items. Spending on apparel and related services decreased by 6.1 percent, following an increase of 6.5 percent in 2000.

Spending on food and transportation rose by 3.2 percent and 2.9 percent, respectively. Spending on housing, health care, and entertainment all rose more than the overall average, ranging from 4.8 to 5.6 percent, respectively. Expenditures on personal insurance and pensions showed the largest increase of all the components, 11.1 percent.

Beginning in 2001, the Consumer Expenditures Interview Survey includes information collected from respondents using income ranges or brackets in addition to discrete income amounts, as provided in the past. This affects expenditure components derived from income data. The increase in personal insurance and pensions was largely due to increases in deductions for Social Security, which are computed from reported salary amounts. 

The Consumer Expenditure Survey is the source of these data. Consumer Expenditure Survey data also include the expenditures and income of consumers, as well as the demographic characteristics of those consumers. For more information, see news release USDL 02-667, "Consumer Expenditures in 2001."