Nationwide Consumer Spending Growth Fueled by Healthcare, Housing, and Food Services
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Consumer spending rose across the US in 2023, according to statistics released today by the U.S. Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased in all 50 states and the District of Columbia, with the percent change ranging from 8.1% in Florida to 4.7% in Iowa. Nationally, current-dollar PCE increased 6.4% in 2023, following a 9.8% rise in 2022.
The largest contributors to the national increase were health care (up 8.6%), housing and utilities (up 7.5%), and food services and accommodations (up 10.4%). Health care was the biggest driver of growth in 33 states, while housing and utilities led the way in 16 states, including Florida and Arizona, which saw the largest overall PCE increases.
Despite the overall growth, gasoline and other energy goods decreased by 9.2% nationally, representing the largest subtraction from growth in 49 states and the District of Columbia. This was particularly notable in Iowa, which had the smallest overall PCE increase.
Per capita PCE increased to $56,202 in 2023, up from $53,082 in 2022. Massachusetts had the highest per capita PCE at $69,101, while Mississippi had the lowest at $42,131. The District of Columbia’s per capita PCE was $92,037.