100 Years of Consumer Spending

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Spending habits have changed significantly over the last century. We have seen great increases in the percentage of income that is allocated to housing and transportation, relative spending on food and clothing has fallen. Here is a full breakdown of how consumer spending has changed over the last 100 years.

In 1901, food and housing together took up about 60 percent of peoples incomes. About 40 percent of a consumers income was spent on food and about 20 percent of a consumers income was spent on housing. About 20 percent of a consumers income was spent on apparel. Virtually none of it was spent on transportation. Health care took up about 5 percent of a consumers income. Entertainment required about 2 percent of a consumers income. Reading was about 1 percent of the income. Alcohol was about 1 percent of a 1901 consumers income. Other expenses claimed the final 11 percent.

From 1934 to 1946, food and housing together took up about 60 percent of peoples incomes. About 34 percent of a consumers income was spent on food and about 26 percent of a consumers income was spent on housing. About 12 percent of a consumers income was spent on apparel. About 10 percent of it was spent on transportation. Health care took up about 3 percent of a consumers income. Entertainment required about 5 percent of a consumers income. Reading was less than 1 percent of the income. Alcohol was not purchased because of prohibition. Other expenses claimed the final 9 percent.

In 1950, food and housing together took up about 55 percent of peoples incomes. About 34 percent of a consumers income was spent on food and about 21 percent of a consumers income was spent on housing. About 12 percent of a consumers income was spent on apparel. About 11 percent of it was spent on transportation. Health care took up about 5 percent of a consumers income. Entertainment required about 5 percent of a consumers income. Reading was about 1 percent of the income. Alcohol was about 1 percent of a consumers income. Other expenses claimed the final 10 percent.

From 1960 to 1961, food and housing together took up about 53 percent of peoples incomes. About 25 percent of a consumers income was spent on food and about 28 percent of a consumers income was spent on housing. About 10 percent of a consumers income was spent on apparel. About 15 percent of it was spent on transportation. Health care took up about 6 percent of a consumers income. Entertainment required about 4 percent of a consumers income. Reading was about 2 percent of the income. Alcohol was about 2 percent of a consumers income. Other expenses claimed the final 8 percent.

From 1972 to 1973, food and housing together took up about 50 percent of peoples incomes. About 21 percent of a consumers income was spent on food and about 29 percent of a consumers income was spent on housing. About 8 percent of a consumers income was spent on apparel. About 24 percent of it was spent on transportation. Health care took up about 5 percent of a consumers income. Entertainment required about 3 percent of a consumers income. Reading was about 2 percent of the income. Alcohol was about 2 percent of a consumers income. Other expenses claimed the final 6 percent.

From 1984 to 1985, food and housing together took up about 44 percent of peoples incomes. About 14 percent of a consumers income was spent on food and about 30 percent of a consumers income was spent on housing. About 6 percent of a consumers income was spent on apparel. About 20 percent of it was spent on transportation. Health care took up about 5 percent of a consumers income. Entertainment required about 5 percent of a consumers income. Reading was about 2 percent of the income. Alcohol was about 2 percent of a consumers income. Other expenses claimed the final 16 percent.

From 1996 to 1997, food and housing together took up about 45 percent of peoples incomes. About 14 percent of a consumers income was spent on food and about 31 percent of a consumers income was spent on housing. About 5 percent of a consumers income was spent on apparel. About 20 percent of it was spent on transportation. Health care took up about 7 percent of a consumers income. Entertainment required about 5 percent of a consumers income. Reading was about 2 percent of the income. Alcohol was about 1 percent of a consumers income. Other expenses claimed the final 15 percent.

From 2002 to 2003, food and housing together took up about 45 percent of peoples incomes. About 13 percent of a consumers income was spent on food and about 33 percent of a consumers income was spent on housing. About 4 percent of a consumers income was spent on apparel. About 22 percent of it was spent on transportation. Health care took up about 6 percent of a consumers income. Entertainment required about 5 percent of a consumers income. Reading was about 2 percent of the income. Alcohol was about 1 percent of a consumers income. Other expenses claimed the final 15 percent.

Yearly Income vs. Expenditures

The relationship between income and expenses has varied over the years, with income generally growing faster than expenses until the 1970s. During the following decade, it dropped significantly.

In 1901, income in excess of expenses was -2.4 percent. In 1918, income in excess of expenses was -5.5 percent. In 1934 to 1936, income in excess of expenses was 0.78 percent. In 1950, income in excess of expenses was 10.1 percent. In 1960 and 1961, income in excess of expenses was 19.4 percent. In 1972 and 1973, income in excess of expenses was 26.9 percent. In 1984 and 1985, income in excess of expenses was 6.3 percent. In 1996 and 1997, income in excess of expenses was 11.9 percent. In 2002 and 2003, income in excess of expenses was 18.9 percent.

Posted by: michaelbnash Tags: consumer spending

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Mike B

If these trends continue into the future in 200 years we are going to run around naked and hungry with a lot trinkets, around our necks.
Outerbox Thinker

I’d put the money where my mouth is: the bet is consumer spending will gradually decline to the level of .78% by 2110.
henrycents

Are these charts adjusted for inflation?
http://www.viewsflow.com/w/jsf 100 years of consumer spending – Viewsflow

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Frymaster

Cool chart, but “consumber” is not a word I know. Please define #typo
http://getstimulustoday.com Matches Malone

Ok, if we’re spending less on food, doesn’t it follow that collectively we’d weigh less? Unless of course we’re spending less money on more food, which isn’t substantiated with the above graphs….

I would’ve liked it better had additional analyses been made….
Edd

1972 ????
BrianH

Interesting graphic, but some odd choices for categories. Defining what goes into each is problematic. Isn’t alcohol sometimes food and sometimes entertainment? Isn’t food sometimes entertainment (eating out)? Why isn’t reading entertainment?

A few huge categories are missing: Education, child/senior care, taxes, savings/retirement, debt service (interest and fees), utlities (internet access, cable, power, water. Given that each of these can be a big hit on most people’s incomes, I’d be interested to see the breakdown and trend on those expenses.
OddNumber

You might want to check the bottom plot. The 1918 figure either needs to drop the negative sign or be shown in the negative direction. Is the 1934-36 data point really .78% or is that a typo as well (looks like it matches the bar, but doesn’t match the format of the rest of the plot)?
http://www.talkingelectronics.com Colin Mitchell

Income Vs Expenditures for 1918 should not be tagged as -5.5% but +5.5%
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heyqt

I think 1918′s bar is inverted…
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http://blog.peterbarney.com/ Peter

Great graphic, and an interesting visualization! It’s incredible how transportation costs have risen, and food costs have dropped.

I think the percentage label for 1918 isn’t supposed to be negative.
Dan

On that last graph, the 1918 bar: Is it mislabeled, or going the wrong way from the 0% line? It shows +5.5% and is labeled -5.5%.
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Steve Bent

Surprising!

I assumed that alcohol would be higher now, yet it was significantly more in 50′s & 60′s. Still possible that actual unit consumption is up with the same % spend, so would be interested if that is the case.

I wonder if later surveys will see a decrease in spending on reading – internet related.

…and what is other!

Good stats.
Ummm….

@ Peter and @ Matches Malone:

The chart is Not spending on food, alcohol, etc. on an Absolute basis, it is a measure of dollars spent on food relative to total dollars spent.

So when you see this chart, you shouldn’t be thinking “oh, the price of food fell” or “oh, we spend less on food now than in the 1920′s, so we should be super skinny”.

Instead you should think, “we spend less on food as proportion of all the dollars we spend,” which could either be because spending on food fell (the numerator), because Incomes Grew (the denominator), or because food spending rose but rose Less than the growth in Income.

Given the level of wealth creation that has happened in the US over the last 100 years, it is largely a rise in Income that is driving the effect that we are seeing in the charts, so that food spending did not Fall, it simply did not rise as much as income. Moreover, the rise in income lead to an increase in Discretionary Consumer Spending, that is, as incomes rose, people spent less (as a percent of total income) on basic necessities, like food, shelter, etc., and more on entertainment, alcohol etc.

It’s actually a little sad that you’re so bad at understanding charts.
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