ENCONSUMER DEMAND, HOUSEHOLD BUDGETS & BUSINESS PLANNING · NOVEMBER 1, 2026
Consumer Spending Rises 4.3% as Housing and Food Costs Increase
BLS reported average annual consumer expenditures of $81,905 in 2025, up 4.3%, with housing representing 33.9% of spending and statistically significant increases in housing and food.
What BLS released on October 29
Source publication date: October 29, 2026. The Bureau of Labor Statistics reported that average annual expenditures for U.S. consumer units were $81,905 in 2025, a 4.3% increase from 2024. Average income before taxes rose 6.4% to $110,847, while the Consumer Price Index for All Urban Consumers increased 2.6%. Survey averages do not describe the budget, credit, or demand of every household or local market.
- 01Total spending rose 4.3%
- 02Housing was 33.9% of spending
- 03Average pre-tax income rose 6.4%
Housing remained the largest spending category
Average housing expenditures increased 5.8% to $27,790 and represented 33.9% of total annual spending. BLS said the increase was driven largely by an 8.0% rise in shelter spending. Transportation represented 16.5% of expenditures, food 13.0%, and personal insurance and pensions 12.4%. Category shares combine households with different incomes, tenure, regions, family sizes, and consumption needs.
Food spending also increased materially
Average food expenditures rose 4.6%, including an 11.7% increase for meats, poultry, fish, and eggs. Overall annual spending ranged from $37,935 for consumer units in the lowest income quintile to $159,512 for those in the highest quintile. That dispersion matters to businesses because a national average can conceal different customer sensitivity to prices, essential expenses, credit, and discretionary purchases.
Practical borrower takeaway
Segment customers by geography, income sensitivity, channel, product, and repeat behavior; reconcile transactions, units, price, discounts, returns, gross margin, and collections to source records. Test sales and liquidity if household essential costs rise faster than discretionary budgets, and identify which expenses can be adjusted without damaging capacity. Use the BLS release as external context, not as proof of company demand, growth, repayment ability, or loan approval.
Consumer-facing borrowers should combine national spending context with their own transaction, price, margin, customer, and geographic data and stress debt service for weaker discretionary demand or higher household budget pressure.
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