How Americans Spent their Trillions of Inflation-Adjusted Dollars on Goods & Services and How that Changed since 2015

Americans' consumer spending rose 5.9% year-over-year in July, not adjusted for inflation, according to the Bureau of Economic Analysis. Adjusted for inflation, spending edged up 2.1% from July 2023.

Of total spending, 66% went to services, 13% to durable goods, and 21% to nondurable goods. Healthcare services and housing costs together accounted for over one-third of total spending. Healthcare services, which include health insurance but exclude pharmaceutical products, made up 18.2% of spending, surpassing housing and utilities at 16.2%. The gap between healthcare and housing spending has widened since 2020.

Spending on nondurable goods, adjusted for price changes, dipped 0.2% monthly but rose 1.4% year-over-year. The largest category, "other nondurable goods," includes pharmaceuticals, medical supplies, toys, household supplies, and personal care products. Spending on gasoline, adjusted for price changes, was slightly down, continuing a long-term trend of falling gasoline consumption due to increased vehicle fuel efficiency and the rise of electric vehicles.

Spending on durable goods fell 1.4% monthly but rose 1% year-over-year. "Recreational goods and vehicles" became the top durable goods category in 2021, surpassing motor vehicles. This category, which includes items like motorhomes, ATVs, musical instruments, and camping equipment, accounted for over 5% of total spending at its peak in late 2023. However, spending has since declined, with a 5.5% drop from the November peak, including a 1.4% plunge in July.

The data is adjusted for inflation specific to each category and expressed in 2017 dollars. The figures represent annual rates.