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ON OCTOBER 4, 2017, the Bureau of Economic Analysis (BEA) released current-dollar statistics on personal consumption expenditures (PCE) by state for 2016. Current-dollar PCE grew 4.0 percent nationwide in 2016, ranging from a low of 0.2 percent in North Dakota to a high of 6.2 percent in Utah (chart 1). Most states' PCE growth in 2016 was similar to growth in 2015, as PCE growth nationwide was identical for both years (table 1).
PCE by state is a comprehensive measure of household consumption at the state level and reflects the value of the goods and services purchased by, or on behalf of, households by state of residence. These statistics provide a general indication of household consumption patterns across states and over time, and show how households allocate their spending between goods and services or between necessities and discretionary items. PCE by state statistics complement BEA's other regional statistics, including personal income and GDP by state, and can be used to show how consumers adjust their spending in reaction to economic developments.
While PCE grew 4.0 percent nationwide, per capita PCE grew 3.2 percent. The per capita measure removes the effect of population change from the growth rate. States with the fastest PCE growth were not necessarily the states with the fastest per capita PCE growth. Hawaii (4.9 percent), California (4.2 percent), and Utah (4.1 percent) had the fastest per capita PCE growth in 2016 (table 2). Utah, which was the fastest-growing state for total PCE, was the third fastest growing state on a per capita basis because it was the state with the fastest population growth in 2016. Colorado and Idaho, also states with fast PCE growth in 2016, are not among the top five fastest growing states on a per capita basis, also because of strong population growth.
Per Capita PCE by State, 2016
Per capita PCE by state ranged from $51,981 in Massachusetts to $30,200 in Mississippi (chart 2). Per capita PCE in the District of Columbia was $56,843.
Health care and housing and utilities, the two biggest expenditure categories, were the largest contributors to growth in PCE in 2016.
Housing and utilities
Per capita housing and utilities expenditures were the largest budget share-the ratio of per capita expenditures for a category to...