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Factoids

Factoids offer brief snapshots of current topics pertinent to the Furniture industry based on our on-going research. Increase your grasp of current trends, consumer attitudes, and shifts within the industry through solid statistics and concise insight.

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Factoids

Top Consumer Spending Categories

Overall, personal consumption expenditures have risen 41.6 percent post-recession with the majority of consumer spending – roughly two-thirds – absorbed by services and the amount increases every year. This is the third factoid in a series of five factoids detailing consumer spending across all spending categories in 2018. 

According to the government’s Bureau of Economic Analysis (BEA), Healthcare costs now surpass total housing expenditures at $3.10 trillion versus $2.98 trillion in 2018  and account for 22.2 percent of consumer spending.

The share for total housing and home furnishings has also increased slightly by 0.2 points, mainly due to rising rent and mortgage prices in a competitive housing market. Motor vehicles have dropped spending share by 1.2 points. Meanwhile Americans are eating out more, with corresponding spending on food/groceries consumed at home declining. In 2018, consumers are spending a greater share of expenditures on financial services – up 5.2 percent from 4.9 percent in 2013 .

Source: Personal Consumption Expenditures, Bureau of Labor Statistics

•Seasonally Adjusted at Annual Rate (SAAR), 2018 through November

 

 (1) Includes rents, mortgage payments, utilities, housing maintenance, insurance, all durable household and outdoor furnishings and tools.  Excludes nondurable household items and services including cellphone, internet, cable, and telephone services.

(2) Health care includes all out-of-pocket costs for health insurance, physicians, hospitals, outpatient facilities, nursing homes, etc. as well as prescription and non prescription drugs and medical equipment.

(3) Motor Vehicle Expense includes gasoline for vehicles, all new and used vehicle purchases, including motorcycles, vehicle leases, maintenance and insurance.

(4) Food/Groceries includes food and all alcoholic and non alcoholic beverages purchased off premise of personal consumption.

(5) Eating out includes all restaurant and fast food purchases.

(6) Financial service charges and fees, commissions, portfolio management, investor advice and planning, and other implied financial institution spending.

(7) Non-profit institutions serving households (NPISHs) provide goods or services to households.

(8) Other includes clothing and shoes, communication services and devices, professional services, social and religious, personal care, recreational items, transportation services, and household supplies. 



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BILL NAPIER    3 months ago

Where I live, Minneapolis, I have never witnessed such explosive growth with these massive apartment complexes being built. Hundreds of units in each building and they are being built everywhere. These apartments rent from $1,600.00-$2,200.00/mth, the price of a decent starter home mortgage.

Now consider that Millennials have virtually no money, no savings, 30%+ live with Mom and Dad, have average credit scores of 650 and an average college tuition debt of $30K, you have to wonder a couple of things.

What will be the short and long term impact on our industry? If 78MM Millennials can't buy homes and have to rent, the average ticket decreases significantly. Add to this the huge average rental cost, how can they save any money for a home, much less furniture?

Second, why is everyone telling us to spend our ad dollars to sell them stuff .... they can't afford. Our industry needs to understand the term "due diligence" when it comes to targeting ad dollars to the people that can afford and can buy our stuff, but they don't.

Just my thought
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[Trackback]    3 months ago

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Fast Fact: Healthcare Costs Surpass Housing Expenditures in 2018http://hfbusiness.com/hfbnow/ArticleID/19067/fast-fact-healthcare-costs-surpass-housing-expenditures-in-2018
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