Hey, big spenders ...
American households spent 6.3 percent more, in average, in 2004, according to survey results released by the Bureau of Labor Statistics today. The stats show that the consumer spending increase last year was much more dramatic than that in 2002 and 2003 - 2.9 percent and 0.3 percent, respectively.
In fact, the change in consumer spending between '03 and '04 outpaced the rise in the annual average consumer price index (which tracks the prices of goods and services and basically provides a measure for inflation) during the same period. The index saw a 2.7 percent increase during that time.
Among the most significant spending increases: Food sales went up 8.3 percent, apparel sales saw a 10.7 percent increase and healthcare expenditures went up 6.5 percent, according to the survey. The Department of Labor also reported a 3.6 percent increase in housing expenditures. During the prior period - '02 to '03 - spending on food and apparel actually declined.
The labor stats bureau didn't speculate on the reasons for these spending hikes.