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How Americans Are Spending Their Money

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How Americans Are Spending Their Money

June 30, 2021

After more than a year at home and with lots of money in their pockets, Americans are ready to spend. According to data from the Bureau of Economic Analysis, spending is up for all consumer goods, and for food at home in particular--which is still rising even months into the re-opening. Perhaps Americans learned to cook this past year and want to keep doing it. They are also buying cars, other recreational vehicles, and fixing up their homes.  

Americans-consumption-pandemic

Before the pandemic, Americans spent more on services instead of goods. And they still do, but service spending cratered in 2020 and still has not fully recovered, with the exception of heatlh care and household services. 

Consumption-covid-Americans

So far, it seems, the pandemic may have changed spending patterns. The economy is coming alive again, but Americans are shifting their spending to things instead of experiences. 

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.

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Photo by Raul Mellado/iStock

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