Web site: www.bls.gov/ro3/ | PLS - 4520 For Release: Thursday, April 9, 2009 |
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Information: | Gerald Perrins (215) 597-3282 |
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Media Contact: | Sheila Watkins (215) 861-5600 |
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CONSUMER SPENDING PATTERNS IN THE
|
Category | United States | Baltimore | Cleveland | Minneapolis | San Diego | Seattle |
---|---|---|---|---|---|---|
Total housing |
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
Shelter |
59.0 | 62.4 | 58.5 | 55.5 | 71.3 | 65.5 |
Utilities, fuels, and public services |
20.6 | 20.7 | 22.7 | 15.8 | 12.5 | 16.1 |
Household operations |
5.8 | 5.0 | 4.7 | 13.8 | 7.2 | 4.2 |
Housekeeping supplies |
3.8 | 3.4 | 3.4 | 2.7 | 1.9 | 2.5 |
Household furnishings and equipment |
10.7 | 8.5 | 10.7 | 12.2 | 7.0 | 11.8 |
Note: Columns may not add to 100.0 due to rounding. |
At 16.3 percent of the total budget, transportation was the second-largest expenditure category in the Baltimore area; this was not significantly different from the national average of 17.7 percent. Expenditure shares for transportation were also similar to those for the nation in Cleveland and Seattle, at 17.5 and 16.9 percent, respectively. However, households in San Diego (13.3 percent) and Minneapolis (14.5 percent) allocated significantly less of their budgets to transportation compared to the nation. Among the 18 published metropolitan areas, 8 had lower-than-average expenditure shares for transportation, while just 2 had above average shares. (See chart 2.)
Of the $8,673 in annual expenditures for transportation in Baltimore, 93.6 percent was spent buying and maintaining private vehicles; this compared to the national average of 94.0 percent. (See table 2 for detailed expenditure levels.) The average number of vehicles per household in Baltimore, at 1.7, was close to the U.S. average of 1.9. The average number of vehicles was also close to the national norm in Minneapolis (2.2), Cleveland (2.1), and San Diego (1.7), but was higher in Seattle (2.4).
Category | United States | Baltimore | Cleveland | Minneapolis | San Diego | Seattle |
---|---|---|---|---|---|---|
Total transportation |
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
Vehicle purchases (net outlays) |
38.1 | 41.1 | 39.4 | 42.4 | 28.8 | 39.0 |
Gasoline and motor oil |
26.4 | 28.9 | 26.0 | 24.7 | 34.5 | 22.8 |
Other vehicle expenses |
29.5 | 23.6 | 31.6 | 25.4 | 27.0 | 27.3 |
Public transportation |
6.0 | 6.4 | 3.0 | 7.5 | 9.7 | 10.9 |
Note: Columns may not add to 100.0 due to rounding. |
The remaining 6.4 percent of a Baltimore household’s transportation budget was spent on public transit, which includes fares for taxis, buses, trains, subways, and planes. This share was not measurably different from the national average of 6.0 percent. (See table B.) Among all 18 published metropolitan areas only 3 allocated at least 10.0 percent of their transportation dollars to public transportation: New York (13.5 percent), San Francisco (11.5 percent), and Seattle (10.9 percent). Households in Cleveland (3.0 percent) and Dallas (4.1 percent) spent the smallest portions of their transportation budgets on public transit. (See table C.)
Area | Transportation Spending | Public Transportation | Share |
---|---|---|---|
United States |
$8,737 | $521 | 6.0 |
Northeast |
8,107 | 688 | 8.5 |
New York |
8,048 | 1,085 | 13.5 |
Philadelphia |
7,345 | 548 | 7.5 |
Boston |
8,707 | 618 | 7.1 |
South |
8,578 | 342 | 4.0 |
Washington, D.C. |
9,531 | 778 | 8.2 |
Atlanta |
8,053 | 570 | 7.1 |
Miami |
7,938 | 530 | 6.7 |
Baltimore |
8,673 | 554 | 6.4 |
Houston |
11,119 | 490 | 4.4 |
Dallas |
10,764 | 439 | 4.1 |
Midwest |
8,159 | 428 | 5.2 |
Chicago |
8,846 | 806 | 9.1 |
Minneapolis-St.Paul |
8,694 | 649 | 7.5 |
Detroit |
8,743 | 433 | 5.0 |
Cleveland |
8,371 | 253 | 3.0 |
West |
10,116 | 762 | 7.5 |
San Francisco |
10,792 | 1,238 | 11.5 |
Seattle |
10,047 | 1,094 | 10.9 |
San Diego |
7,258 | 702 | 9.7 |
Los Angeles |
10,141 | 727 | 7.2 |
Phoenix |
12,424 | 601 | 4.8 |
Payments for personal insurance and pensions, the third largest expenditure category in Baltimore, accounted for 12.0 percent of the typical household’s budget, significantly higher than the national average of 10.8 percent. Households in San Diego also spent a higher-than-average share of their budgets on personal insurance and pensions, at 12.2 percent, while Cleveland spent a significantly lower share, at 9.8 percent. Households in Minneapolis (11.0 percent) and Seattle (10.9 percent) had shares similar to that of the nation. Of the 18 metropolitan areas published, only San Diego and Washington spent a measurably larger share of their budgets on personal insurance and pensions than on food.
Baltimore consumer units spent 11.7 percent of their budgets on food, similar to the national average of 12.4 percent. Cleveland (11.5 percent) and Minneapolis (11.4 percent) also allocated expenditure shares similar to that of the nation, while the portions of budgets spent on food in San Diego (9.7 percent) and Seattle (10.9 percent) were significantly lower.
Households in Baltimore spent $3,386, or 54.4 percent, of their food dollars on food at home and the remaining 45.6 percent on food away from home, such as restaurant meals, carry-outs, food or board at school, and catered affairs. In comparison, the average U.S. household spent 56.2 percent of its food budget on food at home and 43.8 percent on food away from home. When compared to the nation, neither Baltimore nor any of the four areas chosen for comparison spent a significantly different portion of their food budgets on dining out.
Baltimore area households allocated 5.1 percent of their budgets to entertainment, similar to the 5.4 percent spent by the average household in the U.S. As in Baltimore, households in Minneapolis (6.6 percent), Seattle (6.0 percent), San Diego (5.4 percent), and Cleveland (4.7 percent) allocated shares similar to the nationwide average.
Out-of-pocket health care expenses—which include health insurance premiums, medical services, drugs (prescription and nonprescription), and medical care supplies—accounted for 4.6 percent of total household expenditures in Baltimore, measurably lower than the 5.7 percent nationwide. However, consumer units in Cleveland (6.9 percent) spent a higher-than-average portion of their budgets on health care, while those in Minneapolis (6.2 percent), Seattle (5.3 percent) and San Diego (4.8 percent) had expenditure shares close to that for the nation.
Cash contributions accounted for 3.6 percent of a typical consumer unit’s spending in Baltimore, comparable to the 3.7-percent nationwide average. Shares for cash contributions were also similar to the national norm in Seattle (5.3 percent), Minneapolis (4.9 percent), San Diego (3.6 percent), and Cleveland (3.3 percent).
Spending on apparel and services accounted for 3.3 percent of total expenditures in Baltimore, similar to the 3.8-percent share allocated nationally. Among the other four areas, expenditure shares for apparel and services were also close to that for the U.S., ranging from 4.7 percent in Cleveland to 3.5 percent in Seattle.
As noted, Baltimore is 1 of 18 metropolitan areas nationwide for which Consumer Expenditure Survey (CE) data are available. We encourage users interested in learning more about the Consumer Expenditure survey to contact the Mid-Atlantic Information Office at (215) 597-3282. Metropolitan area CE data and that for the four geographic regions and the United States are available on our Web site at www.bls.gov/ro3/.
Changes in 2007
In 2007 there were a number of revisions to the survey questionnaires to capture new products and services that are available to consumers. This was the latest in a series of periodic revisions to keep the surveys current with changes in the marketplace. Also for 2007, a number of expenditure items changed survey source from the Interview Survey to the Diary Survey or vice versa. Due to the overlap in the item coverage between the two surveys, the survey source is periodically reviewed and statistical methods are used to select the best source.
Technical Note
The current Consumer Expenditure Survey (CE) 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, a diary or recordkeeping survey, and an interview survey. 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 data for larger-cost items and expenditures that occur on a regular basis. The U.S. Census Bureau collects the survey data.
Each component of the survey queries an independent sample of consumer units which is representative of the U.S. population. Over the year, about 7,000 consumer units are sampled for the Diary Survey. The Interview Survey is conducted on a rotating panel basis, with about 7,000 consumer units participating each quarter. The data are collected on an ongoing basis in 91 areas 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, metropolitan area data in this release are not directly comparable to those prior to 1996.
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 areas. Differences may result from variations in characteristics such as consumer unit size, age, preferences, income levels, etc. Users should keep in mind that prices for many goods and services have risen since the survey was conducted.
In addition, sample surveys are subject to two types of errors. Sampling errors occur because the data are collected from a representative sample rather than the entire population. Nonsampling errors result from the inability or unwillingness of respondents to provide correct information, differences in interviewer ability, mistakes in recording or coding, or other processing errors. The year-to-year changes are volatile and should be interpreted carefully. Sample sizes for the metropolitan areas are much smaller than for the nation, so the U.S. estimates and year-to-year changes are more reliable than those for the metropolitan areas.
Some expenditure components are subject to large fluctuations from one year to the next because these components include expensive items that relatively few consumers purchase each year. Thus, shifts from year to year in the number of consumers making such purchases can have a large effect on average expenditures. Examples of these types of expenses are purchases of new cars and trucks in the transportation component, and spending on boats and recreational vehicles in the entertainment component.
The CE significance tests are used in this release to compare expenditure shares for 14 expenditure categories in the United States to selected metropolitan areas (areas in this release are listed below). Expenditure shares for housing and transportation that are above or below that for the nation after testing for significance at the 95-percent confidence interval are identified in charts 1 and 2 for the 18 published metropolitan areas.
NOTE: A value that is statistically different from another does not necessarily mean that the difference has economic or practical significance. Statistical significance is concerned with the ability to make confident statements about a universe based on a sample. It is entirely possible that a large difference between two values is not significantly different statistically, while a small difference is, since both the size and heterogeneity of the sample affect the relative error of the data being tested.
Metropolitan areas definitions are based on Core-Based Statistical Areas defined by the U.S. Office of Management and Budget. The metropolitan areas and their component counties and cities discussed in this release are:
- Baltimore, Md. PMSA: includes Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, Howard, and Queen Anne's Counties in Maryland.
- Cleveland-Akron, Ohio CMSA: includes Ashtabula, Cuyahoga, Geauga, Lake, Lorain, Medina, Portage, and Summit Counties in Ohio.
- Minneapolis-St. Paul, Minn. MSA: includes Anoka, Benton, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright Counties in Minnesota and Pierce and St. Croix Counties in Wisconsin.
- San Diego, Calif. MSA: includes San Diego County in California.
- Seattle-Tacoma-Bremerton, Wash. CMSA: includes Island, King, Kitsap, Pierce, Snohomish, and Thurston Counties in Washington.
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 or consumer unit are used interchangeably for convenience.
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 purchases 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.
1 See the Technical Note for the definition of a consumer unit. The terms consumer unit and household are used interchangeably throughout the text for convenience.
2 Statistical significance tests were introduced for metropolitan area expenditure shares beginning with 2004-2005 data. See the Technical Note for further discussion of Consumer Expenditure significance testing.
Item | United States | Baltimore | Cleveland | Minneapolis | San Diego | Seattle |
---|---|---|---|---|---|---|
Consumer unit characteristics: | ||||||
Income before taxes |
$61,820 | $78,930 | $62,104 | $76,772 | $73,604 | $67,923 |
Age of reference person |
48.8 | 48.9 | 53.0 | 48.1 | 46.9 | 48.5 |
Average number in consumer unit: | ||||||
Persons |
2.5 | 2.5 | 2.5 | 2.3 | 2.6 | 2.3 |
Children under 18 |
0.6 | 0.6 | 0.6 | 0.5 | 0.7 | 0.5 |
Persons 65 and over |
0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.2 |
Earners |
1.3 | 1.4 | 1.4 | 1.4 | 1.3 | 1.4 |
Vehicles |
1.9 | 1.7 | 2.1 | 2.2 | 1.7 | 2.4 |
Percent homeowners |
67 | 71 | 68 | 73 | 52 | 67 |
Average annual expenditures | ||||||
Average annual expenditures |
$49,279 | $53,244 | $47,890 | $60,059 | $54,648 | $59,384 |
Percent distribution: |
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
Food |
12.4 | 11.7 | 11.5 | 11.4 | 9.7 | 10.9 |
Alcoholic beverages |
1.0 | 0.9 | 0.8 | 1.5 | 1.0 | 1.0 |
Housing |
33.9 | 35.9 | 34.7 | 34.7 | 41.5 | 34.8 |
Apparel and services |
3.8 | 3.3 | 4.7 | 3.7 | 4.2 | 3.5 |
Transportation |
17.7 | 16.3 | 17.5 | 14.5 | 13.3 | 16.9 |
Healthcare |
5.7 | 4.6 | 6.9 | 6.2 | 4.8 | 5.3 |
Entertainment |
5.4 | 5.1 | 4.7 | 6.6 | 5.4 | 6.0 |
Personal care products and services |
1.2 | 1.1 | 1.2 | 1.1 | 1.3 | 1.1 |
Reading |
0.2 | 0.2 | 0.3 | 0.3 | 0.2 | 0.3 |
Education |
1.9 | 3.3 | 2.1 | 1.8 | 1.2 | 1.6 |
Tobacco products and smoking supplies |
0.7 | 0.4 | 0.8 | 0.5 | 0.2 | 0.5 |
Miscellaneous |
1.7 | 1.7 | 1.7 | 1.9 | 1.6 | 1.9 |
Cash contributions |
3.7 | 3.6 | 3.3 | 4.9 | 3.6 | 5.3 |
Personal insurance and pensions |
10.8 | 12.0 | 9.8 | 11.0 | 12.2 | 10.9 |
Item | United States | Baltimore | Cleveland | Minneapolis | San Diego | Seattle |
---|---|---|---|---|---|---|
Average annual expenditures |
$49,279 | $53,244 | $47,890 | $60,059 | $54,648 | $59,384 |
Food |
6,122 | 6,222 | 5,514 | 6,848 | 5,312 | 6,486 |
Food at home |
3,441 | 3,386 | 3,331 | 3,845 | 2,819 | 3,615 |
Cereals and bakery products |
453 | 438 | 422 | 517 | 332 | 447 |
Meats, poultry, fish, and eggs |
787 | 820 | 934 | 703 | 630 | 761 |
Dairy products |
378 | 338 | 320 | 475 | 286 | 390 |
Fruits and vegetables |
596 | 573 | 531 | 731 | 510 | 619 |
Other food at home |
1,227 | 1,217 | 1,125 | 1,419 | 1,061 | 1,398 |
Food away from home |
2,681 | 2,836 | 2,183 | 3,003 | 2,493 | 2,871 |
Alcoholic beverages |
477 | 479 | 401 | 928 | 520 | 570 |
Housing |
16,684 | 19,123 | 16,602 | 20,819 | 22,670 | 20,671 |
Shelter |
9,849 | 11,930 | 9,719 | 11,559 | 16,174 | 13,530 |
Owned dwellings |
6,624 | 8,921 | 6,269 | 8,592 | 9,278 | 9,213 |
Rented dwellings |
2,596 | 2,504 | 2,773 | 2,222 | 6,276 | 3,261 |
Other lodging |
629 | 505 | 678 | 745 | 620 | 1,056 |
Utilities, fuels, and public services |
3,437 | 3,951 | 3,768 | 3,294 | 2,837 | 3,322 |
Household operations |
966 | 960 | 775 | 2,871 | 1,637 | 860 |
Housekeeping supplies |
639 | 650 | 561 | 562 | 427 | 510 |
Household furnishings and equipment |
1,793 | 1,632 | 1,778 | 2,533 | 1,596 | 2,449 |
Apparel and services |
1,893 | 1,755 | 2,241 | 2,193 | 2,292 | 2,080 |
Transportation |
8,737 | 8,673 | 8,371 | 8,694 | 7,258 | 10,047 |
Vehicle purchases (net outlay) |
3,332 | 3,562 | 3,296 | 3,689 | 2,090 | 3,917 |
Gasoline and motor oil |
2,306 | 2,508 | 2,177 | 2,151 | 2,504 | 2,288 |
Other vehicle expenses |
2,577 | 2,049 | 2,644 | 2,204 | 1,962 | 2,747 |
Public transportation |
521 | 554 | 253 | 649 | 702 | 1,094 |
Health care |
2,810 | 2,431 | 3,293 | 3,705 | 2,613 | 3,127 |
Entertainment |
2,637 | 2,726 | 2,250 | 3,952 | 2,938 | 3,542 |
Personal care products and services |
586 | 565 | 571 | 647 | 691 | 663 |
Reading |
117 | 84 | 154 | 156 | 103 | 196 |
Education |
917 | 1,771 | 1,010 | 1,079 | 677 | 944 |
Tobacco products and smoking supplies |
325 | 229 | 398 | 320 | 95 | 309 |
Miscellaneous |
827 | 908 | 815 | 1,149 | 890 | 1,101 |
Cash contributions |
1,845 | 1,891 | 1,557 | 2,953 | 1,941 | 3,147 |
Personal insurance and pensions |
5,303 | 6,387 | 4,713 | 6,615 | 6,648 | 6,501 |
Life and other personal insurance |
316 | 546 | 429 | 283 | 307 | 395 |
Pensions and Social Security |
4,987 | 5,841 | 4,285 | 6,332 | 6,340 | 6,107 |
Chart 1. Expenditure shares spent on housing in all 18 metropolitan statistical areas compared to the U.S. average, Consumer Expenditure Survey, 2006-2007
Chart 2. Expenditure shares spent on transportation in all 18 metropolitan statistical areas compared to the U.S. average, Consumer Expenditure Survey, 2006-2007
Last Modified Date: April 9, 2009