American spending decreased 2.7% in 2020. U.S. households spent an average of $ 61,334, compared to $ 63,036 the year before, according to new federal data.
This drop in spending came even though our pre-tax income was 1.8% higher on average and inflation was up 1.2%.
You can probably guess one major reason behind the decline in spending from your own experience: the COVID-19 pandemic.
“Stay-at-home orders affected spending on retail stores, entertainment venues and even transportation companies because those who work from home no longer commute,” according to the Federal Labor Statistics Office.
Still, you might be surprised at some of the other things Americans spent less on.
Here are some spending categories where the spending decline has been greatest, based on the latest consumer spending data from the BLS.
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