Bureau of Labor Statistics
General Information:(312)353-1880 Media Contact: Paul LaPorte (312) 353-1138 http://www.bls.gov/ro5 http://www.bls.gov/cex |
FOR IMMEDIATE RELEASE: Thursday, March 9, 2006 |
REGIONAL SPENDING PATTERNS IN THE U.S. AND
METROPOLITAN AREAS IN THE MIDWEST, 2003-2004
Consumer units 1/ spent an average of $42,166 annually in 2003 and
2004, with the cost of housing accounting for slightly less than one
third of the total. Transportation and food accounted for about
another third, according to data released by the U.S. Department of
Labor, Bureau of Labor Statistics. Regional Commissioner Jay A. Mousa
noted that annual expenditures of households in the Midwest 2/ averaged
$41,881, close to the national level. In the other three regions,
expenditures ranged from $38,454 in the South to $46,717 in the West.
(See table 1.) Whereas, each region also spent about two thirds of
its dollars on housing, transportation, and food, some regional
variations were evident in the proportion (or share) of a household's
budget allocated for items within these broad categories. The data in
this report are from the Consumer Expenditure Survey and are collected
by the U.S. Census Bureau for the Bureau of Labor Statistics.
Expenditures vary among the regions because of many factors:
prices, income, population characteristics, consumer tastes, family
size, etc. Consumer units in the Northeast and West had higher incomes
before taxes than did households in the Midwest and South. Those in
the Northeast and West were less likely to own their own home than in
the other two regions. Consumer units in the Midwest averaged 2.1
vehicles per household compared to 1.7 vehicles in the Northeast.
However, there were similarities among the regions as well. The number
of persons over the age of 65 in a consumer unit, the number of
children under the age of 18, and the number of earners was quite close
across all four regions.
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1/ See Technical Note for definition of a consumer unit. The terms
"household" and "consumer unit" are used interchangeably throughout the
release for convenience.
2/ There are four geographic regions in the United States as defined by
the U.S. Census Bureau. See Technical Note for a listing of states in
each region.
Expenditure shares by region
In general, households in the Midwest and South spent a smaller
portion of their budgets on housing (31.1 and 31.5 percent,
respectively) than did their counterparts in the West and Northeast
(33.1 and 34.6 percent, respectively). The cost of transportation
represented a smaller share of household expenses in the Northeast
(16.6 percent) than it did in the South (19.3 percent). In contrast,
expenditure shares for food varied the least among the three major
components, ranging from 12.7 percent in the Midwest to 13.7 percent in
the Northeast. (See table 2.)
Table A. Average annual housing expenditures and percent distribution
of costs for the United States and regions, 2003-2004
------------------------------------------------------------------------
Item | U.S. |Northeast| Midwest | South | West
------------------------------------------------------------------------
Housing expenditures | $13,676 | $15,271 | $13,036 | $12,130 |$15,465
------------------------------------------------------------------------
Total (percent) | 100.0 | 100.0 | 100.0 | 100.0 | 100.0
Shelter | 58.0 | 61.4 | 55.3 | 54.7 | 61.9
Utilities, fuels and | 21.0 | 19.6 | 22.3 | 24.2 | 16.9
services | | | | |
Household furnishings | 11.5 | 10.1 | 12.6 | 11.2 | 12.1
------------------------------------------------------------------------
Housing was the largest component of a household's expenditures
regardless of region, with the cost of shelter (including expenses
associated with owning, renting, and maintaining housing) requiring the
largest outlay. Among the four regions, households in the South and
Midwest spent 54.7 and 55.3 percent, respectively, of their housing
dollars for shelter, while those in the Northeast and West spent larger
shares, 61.4 and 61.9 percent, respectively. Other housing costs
included utilities, fuels and public services, accounted for a higher
proportion of all housing expenditures in the South (24.2 percent) than
in the West (16.9 percent). Consumer units in the South and Midwest
spent a smaller percentage of their budget on housing costs and were
more likely to be homeowners than their counterparts in the other two
regions. Conversely, renting was more prevalent among those in the
Northeast and West, where the expenditure shares for shelter were
higher.
Table B. Average annual transportation expenditures and percent
distribution of costs for the United States and regions, 2003-2004
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Item | U.S. |Northeast|Midwest|South | West
----------------------------------------------------------------
Transportation |$7,791| $7,332 |$7,763 |$7,426|$8,807
expenditures | | | | |
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Total (percent) | 100.0| 100.0 | 100.0 | 100.0| 100.0
Vehicle purchases (net| 45.7| 42.5 | 45.7 | 47.7| 45.5
outlay) | | | | |
Gasoline and motor oil| 18.8| 17.3 | 19.2 | 19.7| 18.4
Other vehicle expenses| 30.1| 32.1 | 30.4 | 29.0| 30.0
Public transportation | 5.3| 8.1 | 4.7 | 3.6| 6.2
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Transportation, the second largest expenditure in the overall
budget, accounted for a smaller share of household spending in the
Northeast than in the other regions. Consumer units in the Northeast
allocated 16.6 percent of all household expenditures for transportation
costs compared to 19.3 percent in the South, 18.9 percent in the West,
and 18.5 percent in the Midwest. (See table B.) The distribution of a
consumer's transportation dollars among the subcomponents also varied
across regions with households in the Northeast spending the largest
share on public transportation (8.1 percent), which includes airplanes,
trains, buses, taxis, and subways and the smallest on vehicle purchase
(42.5 percent); they also averaged the fewest vehicles per household at
1.7. Consumers in the Midwest and South, on the other hand, allocated
a smaller share of their expenditures to public transit, spending 4.7
and 3.6 percent, respectively, and averaged more vehicles per household
at 2.1 and 1.9, respectively.
Regardless of region, the proportion of the household budget spent
for food was close to the national average of 13.2 percent, with
regional differences varying a half a percentage point or less from the
average. Even with regional shares for food purchases so similar, some
variations were noted on how the food dollars were allocated. For
example, households in the Midwest spent a larger share of their total
food budget on food prepared away from home (43.0 percent), such as
restaurant meals, carry-outs, board-at-school, and catered affairs,
than did those in other regions of the country which averaged between
40.5 (South) and 42.6 percent (Northeast).
Among the other major expenditure categories, there was little
variation in the budget shares allocated on a regional basis with
health care costs the only exception. Out-of-pocket medical expenses
averaged 5.1 percent of all expenditures in the Northeast and 5.4
percent in the West, but 6.5 and 6.4 percent, respectively, in the
Midwest and South. Virtually no regional distinctiveness was shown for
personal care products, alcoholic beverages, tobacco products, and
reading. In general, when differences existed, Southern and Midwestern
consumers were most similar in their spending patterns, while
households in the Northeast and West were closer in their expenditure
choices.
Metropolitan area expenditure shares in the Midwest
Within any particular region, expenditure levels among the major
metropolitan areas were generally higher than the average for the
entire region, which includes both metropolitan and nonmetropolitan
areas. (See table 2.) In the Midwest, expenditures among the eight
major metropolitan areas surveyed ranged from $37,070 in Cleveland to
$55,951 in Minneapolis-St. Paul in 2003-2004, with only households in
Cleveland and Cincinnati spending less than the regional average of
$41,881.
During the 2003-2004 period, the expenditure share for housing
varied widely across the eight areas surveyed, with four--Chicago,
Milwaukee, Cleveland and Cincinnati-- surpassing the regional average
of 31.1 percent by more than 2.0 percentage points. Housing costs in
Chicago accounted for 35.8 percent of a household's budget, among the
highest in the nation. Consumer units in Detroit and St. Louis spent
a smaller percentage of their budget on housing, averaging 32.1 and
30.0 percent, respectively. Four of the metropolitan areas had rates
of homeownership meeting or exceeding the regional average of 72
percent-Detroit, Minneapolis-St Paul, Cleveland and St. Louis. Of this
group, Detroit households were the most likely to be homeowners, with
78 percent owning their own residence. In contrast, those in
Cincinnati had the lowest rate of homeownership at 61 percent followed
by Milwaukee at 65 percent.
All but two of the major metropolitan areas had an expenditure
share for transportation below the 18.5 percent average for the Midwest
region. In general, areas with smaller expenditure shares for
transportation tended to spend a larger portion of those dollars on
public transportation. For example, households in Minneapolis-St.
Paul and Chicago spent 16.4 and 16.2 percent, respectively, of their
budgets on transportation, among the lowest in the region; these same
households directed more of their transportation dollars towards public
transit (8.1 and 8.2 percent, respectively) than did other metropolitan
areas in the Midwest. Expenditure shares for transportation were
highest in Detroit (19.2 percent) and St. Louis (18.8 percent) where
public transit accounted for smaller shares, 5.1 percent and 4.5
percent, respectively.
While expenditure shares for food varied little at the regional
level, more variation was evident between the major metropolitan areas
within a region. In the Midwest, food costs ranged from 11.7 percent
of total expenditures in Minneapolis-St. Paul to 13.2 percent in Kansas
City, with shares in six of the eight areas below the regional average
of 12.7 percent. There were also spending variations between the areas
in the components comprising food expenditures. For example, the
amount of the total food budget devoted to eating out accounted for
about 46 percent of expenses in Minneapolis, but about 39 percent in
Cleveland.
Among the other expenditure categories, consumer units in six of
the eight metropolitan areas in the Midwest spent a larger portion of
their total expenditures on apparel and services than the regional
average of 3.9 percent. Expenditure shares were highest in Detroit and
St. Louis, averaging 4.6 percent and 4.7 percent, respectively. Two
areas, Chicago and Cleveland, spent less than 4.0 percent of their
budgets on clothing.
A household's expenditure share for entertainment in the Midwest
was 5.0 percent. Minneapolis-St. Paul, at 6.1 percent and Cincinnati
at 5.1 percent, exceeded the regional average. The other areas fell
into a narrow band, ranging from 5.0 percent in Detroit to a low of 4.5
percent in Kansas City. The portion of a consumer unit's budget spent
on health care costs was below the Midwest average (6.5 percent) in all
of the metropolitan areas in the region. Households in Milwaukee and
Kansas City were the only ones to spend more than 6.0 percent of their
budget on health care, averaging 6.3 and 6.1 percent, respectively.
The expenditure share for personal insurance and pensions in the
Midwest averaged 11.1 percent. Among the eight areas surveyed,
Chicago's share was the smallest at 9.2 percent and Minneapolis' the
largest at 13.2 percent. With the exception of housing, the
expenditure share spread for personal insurance and pensions was wider
than in any of the other major categories in the Midwest.
Additional national, regional and metropolitan area Consumer
Expenditure (CE) data are available online at http://www.bls.gov/cex.
For personal assistance or further information on CE data as well as
other Bureau programs, contact the Chicago Information Office at (312)
353-1880 from 8:00 a.m. to 4:00 p.m. central time.
# # #
Technical Note
The current Consumer Expenditure Survey program began in 1980.
Its principal objective is to collect information on the buying habits
of American consumers. The consumer expenditure data are used in a
wide variety of research by government, business, labor, and academic
analysts. The data are also required for periodic revision of the
Consumer Price Index (CPI).
The survey consists of two components collected by the U.S. Census
Bureau for BLS. The Diary survey, completed by participating consumer
units for two consecutive 1-week periods, collects data on frequently
purchased smaller items. The Interview survey, in which the
expenditures of consumer units are obtained in five interviews
conducted every 3 months, collects expenditures on larger-cost items
and those that occur on a regular basis. The data presented in this
release are based on integrated data from both surveys.
Each component of the survey queries an independent sample of
consumer units which is representative of the U.S. population. Over
the year, about 7,500 consumer units are sampled for the Diary survey.
The Interview sample is conducted on a rotating panel basis, with about
7,500 consumer units participating each quarter. The data are
collected on an ongoing basis in 105 areas across the four regions of
the country.
The integrated data from the BLS Diary and Interview surveys
provide a complete accounting of consumer expenditures and income,
which neither survey component alone is designed to do. Due to changes
in the survey sample frame, area data in this release are not directly
comparable to those prior to 1996-97.
The expenditure data in this release should be interpreted with
care. The expenditures are averages for consumer units with the
specified characteristics, regardless of whether or not a specific unit
incurred an expense for that specific item during the recording period.
The average expenditure may be considerably lower than the expenditure
by those consumer units that purchased the item. This study is not
intended as a comparative cost of living survey as neither the quantity
nor the quality of goods and services has been held constant among the
areas. Expenditure levels vary among areas not only because of
economic factors such as the price of goods and services and family
income, but also because of differences such as the age of the
population, climate, consumer tastes, family size, etc. However,
expenditure shares (or the percentage of a consumer unit's budget spent
on a particular item) can be compared across areas to show the
similarities or differences in spending patterns. Lastly, users should
keep in mind that prices for many goods and services have risen since
the survey was conducted.
Changes in 2004
Beginning in 2004 the Consumer Expenditure Survey includes
imputed income estimates. While the imputed data provide more reliable
income estimates because they allow the inclusion of households for
which income data are not otherwise available, income data from 2004
forward will not be strictly comparable to earlier years.
This change also affects those expenditure items in the personal
insurance and pensions component that are derived from income data.
The increase in personal insurance and pensions in 2004 was largely due
to increases in deductions for Social Security, which are computed from
wage and salary amounts. As a result of the changes in 2004, income
data, personal insurance and pensions, and average annual expenditures
are not strictly comparable to data from previous years. (See
http://www.bls.gov/cex/csximpute.htm for details.)
The Consumer Expenditure Survey presents data for the four regions
of the country-Northeast, South, Midwest, and West --as defined by the
U. S. Census Bureau. The states comprising these regions are listed
below.
- Northeast -- Connecticut, Maine, Massachusetts, New Hampshire, New
York, New Jersey, Pennsylvania, Rhode Island, and Vermont.
- Midwest -- Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota,
Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
- South -- Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky,
Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South
Carolina, Tennessee, Texas, Virginia, West Virginia, and the District
of Columbia.
- West -- Alaska, Arizona, California, Colorado, Hawaii, Idaho,
Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
Consumer expenditure survey data are published for the eight metropolitan
areas in the Midwest region described below.
- Chicago-Gary-Kenosha, Ill.-Ind.-Wis. includes the counties of
Cook, DeKalb, DuPage, Grundy, Kankakee, Kane, Kendall, Lake, McHenry,
and Will in Illinois; Lake and Porter in Indiana; and Kenosha in
Wisconsin.
- Detroit-Ann Arbor-Flint, Mich. includes the counties of Genesee,
Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair,
Washtenaw, and Wayne.
- Cincinnati-Hamilton, Ind.-Ohio-Ky. includes the counties of
Dearborn and Ohio in Indiana; Brown, Clermont, Hamilton, and Warren in
Ohio; Boone, Campbell, Gallatin, Grant, Kenton, and Pendleton in
Kentucky.
- Cleveland-Akron, Ohio includes the counties of Ashtabula,
Cuyahoga, Geauga, Lake, Lorain, Medina, Portage, and Summit.
- Kansas City, Mo.-Kan. includes the counties of Cass, Clay,
Clinton, Jackson, Lafayette, Platte, and Ray Counties in Missouri; and
Johnson, Leavenworth, Miami, and Wyandotte Counties in Kansas.
- Milwaukee-Racine, Wis. includes the counties of Milwaukee,
Ozaukee, Racine, Washington, and Waukesha.
- Minneapolis-St. Paul, Minn.-Wis. includes the counties of Anoka,
Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne,
Washington, and Wright in Minnesota; and Pierce and St. Croix in
Wisconsin.
- St. Louis, Mo.-Ill. includes the counties of Sullivan City in
Crawford County, Missouri, and Clinton, Jersey, Madison, Monroe and St.
Clair Counties in Illinois.
Definitions
Consumer unit -- Members of a household related by blood,
marriage, adoption, or other legal arrangement; a single person living
alone or sharing a household with others but who is financially
independent; or two or more persons living together who share
responsibility for at least 2 out of 3 major types of expenses--food,
housing, and other expenses. The terms household and consumer unit are
used interchangeably for convenience.
Complete income reporter -- In general, a consumer unit that
provides values for at least one of the major sources of its income
such as wages and salaries, self employment income, or Social Security
income. Even complete income reporters may not have provided a full
accounting of all income from all sources. Components of income and
taxes are derived from "complete income reporters" only through 2003.
Beginning in 2004, income imputation was implemented. As a result all
consumer units are considered to be complete income reporters in the
2004 data.
Expenditures-Consist of the transaction costs, including excise
and sales taxes, of goods and services acquired during the interview or
recordkeeping period. Expenditure estimates include expenditures for
gifts, but exclude purchases or portions of purchase directly
assignable to business purposes. Also excluded are periodic credit or
installment payments on goods or services already acquired. The full
cost of each purchase is recorded even though full payment may not have
been made at the date of purchase.
Income before taxes-The total money earnings and selected money
receipts during the 12 months prior to the interview date.
Table 1. Consumer unit characteristics and average annual expenditures by region,
Consumer Expenditure Survey, 2003-2004
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Consumer unit | | | |
characteristics | Northeast | Midest | South | West
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Income before taxes 1/ | $59,187 | $53,149 | $49,110 | $54,416
| | | |
Age of reference person | 50.1 | 48.9 | 48.2 | 46.9
| | | |
Average number in | | | |
consumer unit: | | | |
| | | |
Persons | 2.4 | 2.4 | 2.5 | 2.6
Children under 18 | .6 | .6 | .6 | .7
Persons 65 and older | .3 | .3 | .3 | .3
Earners | 1.3 | 1.4 | 1.3 | 1.4
Vehicles | 1.7 | 2.1 | 1.9 | 2.0
| | | |
Percent homeowner | 65 | 72 | 69 | 62
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Expenditure category |Expend |Share|Expend |Share|Expend |Share|Expend |Share
---------------------------------------------------------------------------------
Average annual expend |$44,202 100.0|$41,881 100.0|$38,454 100.0|$46,717 100.0
| | | |
Food | 6,049 13.7| 5,338 12.7| 5,142 13.4| 6,051 13.0
Alcoholic beverages | 526 1.2| 415 1.0| 346 .9| 477 1.0
Housing | 15,271 34.5| 13,036 31.1| 12,130 31.5| 15,465 33.1
| | | |
Apparel and services | 2,018 4.6| 1,617 3.9| 1,548 4.0| 1,885 4.0
Transportation | 7,332 16.6| 7,763 18.5| 7,426 19.3| 8,807 18.9
Healthcare | 2,248 5.1| 2,724 6.5| 2,453 6.4| 2,543 5.4
| | | |
Entertainment | 2,067 4.7| 2,093 5.0| 1,974 5.1| 2,516 5.4
Personal care | 582 1.3| 531 1.3| 519 1.3| 613 1.3
products & services | | | |
Reading | 149 .3| 146 .3| 96 .2| 148 .3
| | | |
Education | 1,096 2.5| 862 2.1| 606 1.6| 996 2.1
Tobacco products & | | | |
smoking supplies | 301 .7| 352 .8| 283 .7| 224 .5
Miscellaneous | 654 1.5| 722 1.7| 534 1.4| 752 1.6
| | | |
Cash contributions | 1,135 2.6| 1,630 3.9| 1,298 3.4| 1,508 3.2
Personal insurance & | 4,776 10.8| 4,653 11.1| 4,101 10.7| 4,733 10.1
pensions |
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1/ Components of income and taxes are derived from "complete income reporters"
only through 2003. Beginning in 2004 income imputation was implemented. As a
result, all consumer units are considered to be complete income reporters in the
2004 data.
Table 2. Consumer unit characteristics and percent distribution of expenditures, Midwest region
and selected metropolitan areas, Consumer Expenditure Survey, 2003-2004
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|Midwest| | | Mil- | Mpls | Cleve- | Cincin-| St. | Kansas
Item |Average|Chicago|Detroit| waukee|St. Paul| land | nati | Louis | City
----------------------------------------------------------------------------------------------------
Consumer unit |
characteristics: |
|
Income before taxes 1/|$53,149 $65,545 $62,728 $51,958 $69,717 $51,796 $54,627 $61,082 $55,719
|
Age of reference | 48.9 49.2 49.0 49.3 47.1 49.1 49.4 49.5 48.1
person |
|
Average number in |
consumer unit: |
|
Persons | 2.4 2.7 2.7 2.5 2.4 2.5 2.3 2.5 2.6
Children under 18 | .6 .7 .8 .7 .6 .6 .5 .6 .7
Persons 65 and over | .3 .3 .3 .3 .2 .3 .3 .3 .3
Earners | 1.4 1.5 1.4 1.3 1.5 1.4 1.3 1.4 1.4
Vehicles | 2.1 1.8 2.1 2.1 2.6 1.8 2.0 2.1 2.1
|
Percent homeowner | 72 71 78 65 73 73 61 74 71
|
|
Average annual expend |$41,881 $50,627 $46,731 $42,111 $55,951 $37,070 $40,594 $47,793 $46,308
|
Total (percent): | 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
|
Food | 12.7 11.9 12.3 12.3 11.7 12.4 13.1 12.5 13.2
Alcoholic beverages | 1.0 1.0 .8 1.3 1.4 .9 1.0 1.3 .9
Housing | 31.1 35.8 32.1 34.6 32.7 34.0 33.4 30.0 32.7
Apparel & services | 3.9 3.8 4.6 4.1 4.0 3.2 4.0 4.7 4.3
Transportation | 18.5 16.2 19.2 17.0 16.4 18.2 17.9 18.8 18.4
Healthcare | 6.5 5.3 4.3 6.3 5.2 5.8 5.8 5.9 6.1
Entertainment | 5.0 4.6 5.0 4.8 6.1 4.6 5.1 4.7 4.5
Personal care | 1.3 1.2 1.3 1.4 1.3 1.2 1.4 1.2 1.4
products & serv. |
Reading | .3 .3 .3 .3 .3 .3 .4 .3 .4
Education | 2.1 3.0 2.3 1.8 2.2 1.9 1.9 2.3 1.8
Tobacco products & | .8 .6 .9 .7 .6 .9 .7 .7 .6
smoking supplies |
Miscellaneous | 1.7 1.4 1.7 2.2 2.1 1.9 1.4 1.2 1.4
Cash contributions | 3.9 5.6 2.8 2.6 2.8 2.6 3.8 5.2 3.9
Personal insurance & | 11.1 9.2 12.4 10.6 13.2 11.9 10.0 11.0 10.5
pensions |
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Note: Numbers may not add to 100 due to rounding.
1/ Components of income and taxes are derived from "complete income reporters" only through 2003.
Beginning in 2004 income imputation was implemented. As a result, all consumer units are considered
to be complete income reporters in the 2004 data.
Last Modified Date: July 24, 2007
