Map Shows Which States Have the Biggest Spenders

Newly released data shows which states spend the most on goods and services, as well as those that continue to suffer from rising prices.
Just one month out from the 2024 election, voters’ concerns are still centered on the economy, and the high, albeit moderating, rates of inflation. An early September Pew Research Center poll revealed it was the top issue for voters in the home stretch of the election, with 81 percent of respondents considering the current state of the U.S. economy “very important” in deciding their vote.
According to the latest data from the Bureau of Labor Statistics, the annual inflation rate stands at 2.5%. Despite being at its lowest level since February 2021, Americans are still grappling with much higher costs compared to four years ago, which can be attributed to factors such as the COVID-19 pandemic, supply chain disruptions resulting from Russia’s invasion of Ukraine, and corporate “price gouging.”
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On Thursday, the Bureau of Economic Analysis (BEA) released its annual breakdown of personal consumption expenditures (PCE) for all 50 states. The figure, also known as consumer spending, shows how much individuals are shelling out on goods and services throughout the year, and changes are often employed as a litmus test for the effects of inflation.
The levels of consumer spending for each state, as well as the percentage increases between 2022 and 2023, can be seen on the map below, created by Newsweek using BEA data.
Across all states and the District of Columbia, per capita PCE rose from $53,082 in 2022 to $56,202 in 2023. Among the states themselves, per capita PCE ranged from a high of $69,101 in Massachusetts to a low of $42,131 in Mississippi, while in the D.C., it was $92,037.
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Other high-spending states include Connecticut ($65,128), New Hampshire ($65,098), California ($64, 835), New Jersey ($63,814) and Colorado ($63,781)
At the other end, were Arkansas ($44,254), Oklahoma ($44,398) and Alabama (44,529).
New England had a PCE of $65,660, nearly $10,000 above the national average, while the Southwestern states of Arizona, New Mexico, Oklahoma and Texas combined for the lowest regional average of $51,547.
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Consumer spending increased across the U.S. by 6.4 percent in 2023, following a 9.8 percent increase in 2022.
Among the states, Florida saw the largest increase (8.1 percent) in consumer spending between 2022 and 2023, followed by Maine (7.4 percent), Arizona and New York (both 7.2 percent).
According to the BEA, consumer spending on health care, housing and utilities, and food services and accommodation were the greatest contributors to the increase.
Of these, heath care increased 8.6 percent nationally between 2022 and 2023, and was the largest contributor to growth in 33 states, while housing and utilities, which increased 7.5 percent, contributed the most to PCE increases in 16 states.
Nationally, food services and accommodations increased by 10.4 percent, but this was not the largest contributor to growth in any state.
However, gasoline and other energy goods decreased 9.2 percent nationally, tempering the overall increase, albeit slightly.
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