Quantcast
Get breaking news alerts via email

Click here to manage your alerts
FILE - In this Friday, Nov. 23, 2012, file photo, a man examines a row of washers and dryers while shopping at a Sears store in Henderson, Nev. Consumer spending has recovered at a much slower pace in states with big housing busts, a stark illustration of how the housing downturn has weighed on the economy years after the recession. Spending in Nevada rose just 3.5 percent in the first three years after the recession ended, the weakest of any state and far below the national average of 10.7 percent, according to a new annual government report. (AP Photo/Julie Jacobson, File)
Oil boom and housing bust alter U.S. spending trends
Post-recession » Spending jumps 28 percent in North Dakota, lags in Nevada, Arizona.
First Published Aug 07 2014 12:09 pm • Last Updated Aug 07 2014 03:55 pm

Consumer spending has soared since the Great Recession ended five years ago in U.S. states with oil and gas drilling booms and has lagged in states hit especially hard by the housing bust.

The figures come from a new annual report the government issued Thursday that for the first time reveals consumer spending on a state-by-state basis. The numbers point to substantial shifts in the economy since the recession ended.

Join the Discussion
Post a Comment

Spending jumped 28 percent in North Dakota, the largest gain nationwide, from 2009 through 2012, the latest year for which figures are available. It surged nearly 16 percent in Oklahoma.

Other states with rapid total personal consumption expenditures growth in 2012 were Texas, the District of Columbia and Utah.

By contrast, spending eked out a scant 3.5 percent increase in Nevada, the weakest for any state and far below the 10.7 percent national average. Arizona’s 6.2 percent increase was next-weakest. Home values plummeted in both states once the housing bust hit in 2006.

The changes in spending patterns in North Dakota have been particularly dramatic. Its per-capita spending in 2007, before the recession began, was $32,780. That ranked it 24th among states. By 2012, the figure was $44,029, fourth-highest nationwide. (The figures aren’t adjusted for inflation.)

North Dakota has boomed in large part because of a breakthrough drilling technique, known as hydraulic fracturing, or "fracking," that has unlocked vast oil and gas reserves. The state’s per-person income soared 16.2 percent, before inflation, from 2011 to 2012, by far the most for any state.

The report points to wide spending disparities elsewhere in the country. Per-person spending in 2012 was highest in Washington, D.C., at $59,423, followed by Massachusetts at $47,308. Spending was lowest that year in Mississippi, at $27,406. Arkansas was the second-lowest, at $28,366.

The size of the disparities has changed little in the past decade.

The government’s report includes figures for specific spending categories. For example, consumers spent the most on housing and utilities in Washington, D.C., where per-capita spending reached $11,985, followed by Hawaii at $10,002.


story continues below
story continues below

Utah ranked among the lowest for health care and food and beverage spending categories.



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.