Californians spend $8,640 more than other Americans. Where did it go?

"California's overall consumer spending in 2024 equaled $65,340 per resident, the fourth-highest among states. That was $8,640 more than $56,700 spent nationally. Most of California's extra spending was tied to buying services and this math sees housing as a service. Californians spent $46,360 for services per resident, the third-highest level among the states. That was $8,070 extra compared to the nation's $38,290."

"Contrast that large gap with the smaller one for goods. Thanks to the state's highly competitive retail market, online shopping, and its huge agricultural industry, Californians can buy goods at prices closer to the national norm than you may think. Californians spent $18,980 per resident on goods last year, just $570 above the $18,410 spent nationally. Big paydays California's lofty spending isn't just about the state's high cost of living. Do not forget the state's substantial earnings, which also contribute to increased spending."

California's consumer spending per resident in 2024 was $65,340, the fourth-highest among states and $8,640 above the national per-resident figure of $56,700. Services accounted for most of the excess spending, with Californians spending $46,360 per resident on services, the third-highest state level and $8,070 above the national services spending of $38,290. Goods spending was much closer to the national norm at $18,980 per resident, only $570 above the U.S. goods spending of $18,410. Housing is counted as a service in these numbers. Personal income per resident was $86,300, ranking fifth and $13,100 above the national $73,200. Increased service spending reflects higher incomes and demographic differences such as a younger population.

Read at www.ocregister.com