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Internet address:    http://www.bls.gov/cex      USDL-054-2243
Technical information:         202-691-6900      FOR RELEASE:  10:00 A.M. EST
Media information:             202-691-5902      Tuesday, November 29, 2005

                             CONSUMER EXPENDITURES IN 2004

       Average annual expenditures per consumer unit rose 6.3 percent in 2004, 
following increases of 0.3 percent in 2003 and 2.9 percent in 2002, according to results 
from the Consumer Expenditure Survey released by the Bureau of Labor Statistics of the 
U.S. Department of Labor.  The increase in expenditures from 2003 to 2004 was more 
than the 2.7 percent rise in the annual average Consumer Price Index (CPI) over this 
period.

       Changes in expenditures from 2003 to 2004 for the major components of 
spending were generally larger than a year earlier.  Among the components, the 2004 
increases for food (8.3 percent), housing (3.6 percent), apparel (10.7 percent), and 
healthcare (6.5 percent) were statistically significant.  (Average annual expenditures and 
expenditures for personal insurance and pensions are not strictly comparable to previous 
data.  See "Changes in 2004" on page 2.)

Average annual expenditures and characteristics of all consumer units and 
percent changes, Consumer Expenditure Survey, 2002-2004
_____________________________________________________________________________
                                                          Percent change
Item                         2002     2003     2004    2002-2003  2003-2004
-----------------------------------------------------------------------------
Number of consumer 
 units (000�s)            112,108  115,356  116,282

Income before taxes 1/    $49,430  $51,128  $54,453

Average age of 
 reference person            48.1     48.4     48.5

Average number in 
 consumer unit:
  Persons                     2.5      2.5      2.5
  Earners                     1.4      1.3      1.3
  Vehicles                    2.0      1.9      1.9
Percent homeowner              66       67       68

Average annual 
 expenditures             $40,677  $40,817  $43,395       0.3        6.3
  Food                      5,375    5,340    5,781       -.7        8.3
    At home                 3,099    3,129    3,347       1.0        7.0
    Away from home          2,276    2,211    2,434      -2.9       10.1
  Housing                  13,283   13,432   13,918       1.1        3.6
  Apparel and services      1,749    1,640    1,816      -6.2       10.7
  Transportation            7,759    7,781    7,801        .3         .3
  Health care               2,350    2,416    2,574       2.8        6.5
  Entertainment             2,079    2,060    2,218       -.9        7.7
  Personal insurance 
   and pensions             3,899    4,055    4,823       4.0       18.9
  Other expenditures        4,182    4,094    4,461      -2.1        9.0
_____________________________________________________________________________
1/ Income values are derived from "complete income reporters" only prior to 2004.


       Consumer Expenditure Survey (CE) data include the expenditures and income of 
consumers, as well as the demographic characteristics of those consumers.  Tables with 
more expenditure detail than is shown in this newspress release will be available November 
30, 2005 by accessing the BLS website (http://www.bls.gov/cex).  Tables show 2004 CE 
data by standard classifications that include income quintile, income class, age of 
reference person, size of consumer unit, number of earners, composition of consumer 
unit, region of residence, housing tenure, type of area (urban-rural), race, Hispanic origin, 
occupation, and education.  Other tables available on the website include expenditures by 
age, region, size, or gender cross-tabulationsed by income before taxes and other demographic 
variables.  Historical tables back to 1984 and tabulations by Metropolitan Statistical 
Areas (MSA) are also available.


Other available data

       A forthcoming annual report will include a brief discussion of expenditure 
changes in 2004 and tables with data classified by the standard characteristics listed 
above.  Detailed reports that include CE data are published at two-year intervals and 
include the standard tabulations and cross-tabulations at the same level of expenditure 
detail as shown on the website.  MSA tables are also included.  All data published in the 
reports and posted to the website are integrated from the two CE components--the 
quarterly Interview Survey and weekly Diary Survey.

       Other survey information available on the Internet includes answers to frequently 
asked questions, a glossary, order forms for survey products, and analytical articles that 
use CE data.  Beginning with the 2000 data, standard error tables for integrated data are 
available on the BLS site.

       The 2004 Diary and Interview microdata soon will be available on CD-ROM.  
The Interview files contain expenditure data in two different formats: MTAB files that 
present monthly values in an item-coding framework based on the CPI pricing scheme, 
and EXPN files that organize expenditures by the section of the Interview questionnaire 
in which they are collected.  Expenditure values on EXPN files cover different time 
periods depending on the specific questions asked, and the files also contain relevant 
non-expenditure information not found on the MTAB files.  The CE microdata files are 
available on CD-ROM back to 1990 and for selected earlier years.  Beginning with the 
1996 microdata on CD-ROM, files are available in a choice of either ASCII format or PC 
SAS datasets.  (See www.bls.gov/cex/csxmicro.htm for details.)


Changes in 2004

       Beginning in 2004 the Consumer Expenditure Survey includes imputed income 
estimates.  While the imputed data provide more reliable income estimates because they 
allow the inclusion of households for which income data are not otherwise available, 
income data from 2004 on will not be strictly comparable to earlier years.

       This change also affects those expenditure items in the personal insurance and 
pensions component that are derived from income data.  The increase in personal 
insurance and pensions in 2004 was largely due to increases in deductions for Social 
Security, which are computed from wage and salary amounts.  As a result of the changes 
in 2004, income data, personal insurance and pensions, and average annual expenditures 
are not strictly comparable to data from previous years.

       For further information, contact the Division of Consumer Expenditure Surveys, 
Office of Prices and Living Conditions, Bureau of Labor Statistics, 2 Massachusetts Ave., 
N.E., Washington, DC  20212-0001 or call 202-691-6900.  Information in this release 
will be made available to sensory impaired individuals upon request. Voice phone:  202-
691-5200; TDD message referral phone number:  1-800-877-8339.