According to the U.S. Bureau of Labor Statistics, an American household earning an annual income of $94,003 spent about $72,967 on consumer goods in 2022. Housing costs accounted for over 33% of the total expenditures for goods and services.
Key Takeaways
- Consumer goods are products manufactured and sold for final consumption by the purchaser.
- Non-durable consumer goods are consumed immediately or have a life span of fewer than three years—examples are food and clothing.
- Durable consumer goods have a life span of over three years and include cars and furniture.
What Are Consumer Goods?
Consumer goods are also known as retail goods and include food, clothing, electronics, jewelry, personal hygiene products, household cleaning products,furniture, books, magazines, tools, and other outdoor equipment. The purchasers of consumer goods do not resell the goods but will use them daily. Expenditures on consumer goods account for nearly one-third of total consumer spending annually.
Consumer goods include durable and non-durable consumer goods. Durable consumer goods are products with a lifespan greater than three years, such as cars, furniture, and appliances. Non-durable consumer goods are consumed immediately like food or clothing.
In the United States, measuring the amount of money spent on consumer goods is key to calculating the country's gross domestic product (GDP), which measures the size of the economy and growth rate.
Consumer Spending
A subcategory of consumer goods, consumer staples are products individuals consider essential and buy the most. These products include beverages, food, household items, and tobacco. Other consumer goods that people buy regularly are cleaning products, personal hygiene items, andclothing.
According to the U.S. Bureau of Labor Statistics, an American household earning an average income of $94,003 before taxes in 2022 allocated annual spending on average to:
- Food at home: $5,703
- Food away from home: $3,639
- Apparel and services: $1,945
- Vehicle purchases: $4,496
- Gasoline, other fuels: $3,120
- Personal care products and services: $866
- Entertainment: $3,458
What Affects Consumer Spending?
Consumer spending can reflect fluctuations in economic conditions. Expenditures for jewelry, electronics, and automobiles are typically subject to the greatest fluctuations. These are areas where consumers tend to cut back their expenses substantially during difficult economic times when they have less disposable income remaining after paying for basic expenses such as food, housing, and utilities.
Why Is Consumer Spending Used as an Economic Indicator?
Consumer spending, which includes consumer goods and other expenditures like housing and transportation,is reported monthly and considered a leading economic indicator. The goods and services purchased by those in the United States help gauge the economy's strength.
How Can the U.S. Government Boost Consumer Spending?
During periods when the overall economy and consumer spending are sluggish, the U.S. government sometimes attempts to stimulate spending through tax cuts. Such tax cuts can increaseconsumer spending and boost the overall economy. The effectiveness of this tactic is limited during times of high unemployment since the effects of higher unemployment tend to offset extra consumer spending by those employed.
The Bottom Line
Consumer goods include durable and non-durable consumer goods. In 2022, Americans spent over one-third of their income on housing. An additional third of income was spent on food and transportation. Changes in consumer spending reflect economic conditions and are monitored by the Bureau of Labor Statistics and the Bureau of Economic Analysis.
FAQs
A subcategory of consumer goods, consumer staples are products individuals consider essential and buy the most. These products include beverages, food, household items, and tobacco. Other consumer goods that people buy regularly are cleaning products, personal hygiene items, and clothing.
What products do Americans buy the most? ›
Among U.S. consumers the two most popular categories for online purchases are Clothing and Shoes. 43 percent and 33 percent of consumers respectively chose these answers in our representative online survey.
What do consumers buy the most? ›
What is the highest in-demand product in the world? Clothing is the most purchased item in the world. Whether its clothing for women, men or children, the industry is booming.
What do American consumers spend the most money on? ›
You have to live somewhere, and for the average American—regardless of whether you rent, buy, or build a house—a place to live is the single largest expense. In fact, average Americans spend nearly a third of their total annual spending on a place they can call home.
What are people buying the most right now? ›
20 Most Popular Items Our Readers Are Buying Right Now
- Coffee Makers + Mugs.
- Knife Sharpeners.
- Solar Lights.
- Luggage.
- Dental Floss.
- Microwaves.
- Vacuums + Steam Mops.
- Pet Hair Remover Tools.
People buy a lot: clothes and fashion in general are the products that sell the most because people are not afraid of buying them online anymore.
Which product is more demand in USA? ›
We have a better view of the best high-demand products in the USA. As you know, the USA is the leading economy in the world so there is no shortage of statistics for e-commerce. The top five are clothing, shoes, food, bags, and cosmetics. We need to remove food from our list, as it is not a common item to dropship.
What product is the highest in demand? ›
25 Products in high demand in India
- Mobile phones.
- Laptops.
- Wireless earphones.
- Skincare products.
- Hair oil.
- Makeup and cosmetics.
- Nail products.
- T-shirts.
The most sold item in the world is clothing and fashion items.
What are the 4 main consumers? ›
There are four types of consumers: omnivores, carnivores, herbivores and decomposers.
Most popular non-essentials by percentage who purchase them often
| Accessories | 40% |
|---|
| Live event tickets (e.g., concerts) | 17% |
| Hobby supplies | 16% |
| Video games | 15% |
| Body art (e.g., tattoos, piercings) | 15% |
22 more rowsConsumer Spending
A subcategory of consumer goods, consumer staples are products individuals consider essential and buy the most. These products include beverages, food, household items, and tobacco. Other consumer goods that people buy regularly are cleaning products, personal hygiene items, and clothing.
What brings in the most money for America? ›
Biggest Industries by Revenue in the US in 2024
- Commercial Banking in the US. ...
- Hospitals in the US. ...
- Drug, Cosmetic & Toiletry Wholesaling in the US. ...
- Health & Medical Insurance in the US. ...
- Pharmaceuticals Wholesaling in the US. ...
- New Car Dealers in the US. ...
- Life Insurance & Annuities in the US. ...
- Public Schools in the US.
What Are the Major U.S. Imports?
- Machinery (including computers and hardware) – $386.4 billion.
- Electrical machinery – $367.1 billion.
- Vehicles and automobiles – $306.7 billion.
- Minerals, fuels, and oil – $241.4 billion.
- Pharmaceuticals – $116.3 billion.
- Medical equipment and supplies – $93.4 billion.
U.S. consumers most commonly buy Clothing second-hand followed by Shoes, while they are least likely to buy Stationery & hobby supplies second-hand. These results are based on our representative online survey conducted in 2024 among 10,051 respondents in the United States.
What is the most profitable thing to sell online? ›
Top 10 Most Profitable Products To Sell Online
- Sustainable clothing and accessories. ...
- Subscription boxes for hobbies and interests. ...
- Personalized gifts and home decor. ...
- Digital printables and templates. ...
- Natural and organic beauty products. ...
- Fitness and wellness equipment. ...
- Educational toys and learning resources.
Trade In March 2024, the top exports of United States were Crude Petroleum ($10.9B), Aircraft Parts ($10.3B), Refined Petroleum ($9.97B), Commodities not elsewhere specified ($5.86B), and Cars ($5.85B).
What does the United States sell the most of? ›
According to data through December 2023, the following are the United States' top exports by value:
- Oil.
- Civilian Aircraft Parts.
- Gasoline and Other Fuels.
- Liquified Natural Gas (LNG) and Other Petroleum Gases.
- Passenger Vehicles.
The top five imports of the US are electrical machinery, vehicles, crude oil, pharmaceuticals, and plastic articles. These imports play a vital role in the US economy, providing consumers with a wide variety of goods and services, supporting various domestic industries, and fueling economic growth.
