Americans becoming more "self" and "spend"-centered as consumer expenditures surpass $10 trillion for the first time
CHICAGO, May 21, 2014 /PRNewswire/ -- Americans appear ready to move on from worrying about the recession and one thing seems clear: they need a vacation. Mintel's annual comparative audit report, American Lifestyles 2014, suggests that renewed consumer spending is in line with pre-recession trends and consumer optimism is higher than it's been in years. In 2013, Mintel estimates that personal consumption expenditures on consumer goods reached $10 trillion for the first time. The outlook for 2014 continues the positive trend with spending expected to increase further by 3.6% – more than three times the projected rate of inflation for the year.
In 2014, just one in 10 Americans say that they don't spend extra money – that they save it; a similar share say that they "never" have any extra money. These sentiments are in stark contrast with 2013 and 2008 survey results when the share of savers was at least double. Meanwhile, all the saving and responsible spending appears to have paid off. Those who say they "never" have any extra money has declined since 2008 from 15% to 12% in 2014.
"In 2014, it appears that America has finally stopped holding its collective breath, waiting for the other economic shoe to drop," says Fiona O'Donnell, category manager, multicultural, lifestyles and leisure at Mintel. "After five years of slow but steady growth, Americans have passed the tipping point of prolonged economic worry and have cautiously accepted that things are better. Confidence in personal finances has allowed consumers to think about the future and look forward rather than linger over the past."
Mintel 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 (with a 1.5% decline 2008-09). The categories that appear to poised to show the greatest gains over the next five years are many of the same ones that performed the strongest from 2012-13: nonessentials such as leisure and entertainment (+28.5%), vacations and tourism (+27.3%), technology and communications (+25.2%) and alcohol on premises (+23.7%).
"An improved personal financial situation has allowed many to expand their focus from simply keeping up with the bills to looking more widely at what goals they would like to accomplish," says Fiona. "Improving personal health through diet and exercise are key areas where Americans are looking to make positive changes, and with less mental energy expended on financial worries, they are in a better position to make these aspirations a reality."
For more information on the categories covered in the American Lifestyles 2014 report, please contact the Mintel press office. Categories covered include: Food (at home), Dining Out, Alcoholic Beverages (in and out of home), Non-Alcoholic Beverages, Beauty & Personal Care, OTC & Healthcare Remedies, Household Care, Clothing, Footwear & Accessories, Technology & Communication, Vacations & Tourism, Leisure & Entertainment, Home & Garden, Transportation, Personal Finance & Housing.
Mintel is a leading global supplier of consumer, product and media intelligence. For more than 40 years, Mintel has provided insight into key worldwide trends, offering exclusive data and analysis that directly impacts client success. With offices in Chicago, New York, London, Sydney, Shanghai, Tokyo, India, Malaysia, Singapore and São Paulo, Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit www.mintel.com.