According to Mintel’s American Lifestyles 2014, renewed consumer spending is in line with pre-recession trends, and consumer optimism is higher than it’s been in years. The study found that personal consumption expenditures on consumer goods reached $10 trillion for the first time in 2013, and the outlook for 2014 is for spending to increase further by 3.6%, more than three times the projected rate of inflation for the year.
The report shows forecasts that total US consumer expenditures will grow by 20% from 2013-2018 to reach $12,025 billion. In comparison, expenditures increased just 15% from 2008 to 2013.The categories that show the greatest gains over the next five years are leisure and entertainment, vacations and tourism, technology and communications, and alcohol on premises.
| Fast Growing Consumer Spending Categories
(% Growth From 2013-2018; $ in Billions/2013) |
||
| Growth Category | Avg. Spend 2013, B$ | % Projected Growth to 2018 |
| Leisure & Entertainment |
335.8B |
28.5% |
| Vacations & Tourism |
221.8B |
27.3 |
| Technology & Communications |
661.6B |
25.2 |
| Alcohol on premises (OOH) |
92.7B |
23.7 |
| Avg. growth in personal consumption |
10T |
20% |
| Source: Mintel, May 2014 | ||
Over the course of one year, the share who say they spend extra money on vacations nearly doubled, the greatest gain for any one area of consumer spending, and a sign of optimism since when money is tight vacations are the first discretionary areas to be cut from the budget, says Mintel researchers.
Americans are also focused on self-improvement for 2014, says the report. Top goals for 2014 include:
Increased family time (88%)
Healthier diet (88%), exercising more (87%)
Getting household finances in order (84%)
Achieving a better work/life balance (82%)
Taking care of personal appearance (81%).
