Household Spending Rises

Now for some good news: $51,442.

That's how much the average household spent in 2012, according to the Consumer Expenditure Survey. For the first time since 2008, average household expenditures surpassed $50,000—nominally at least. After adjusting for inflation, average household spending was at the highest level since 2009 and well above the $50,725 of 2000. But spending in 2012 was still 6.7 percent below the peak spending year of 2006, when the average household spent $55,119 (in 2012 dollars).

But that's quibbling. The good news is that household spending climbed by 1.4 percent between 2011 and 2012, after adjusting for inflation—the biggest increase in real spending since the gain that occurred between 2004 and 2005 (driven by the housing bubble). Here are the annual figures from 2000 to 2012 (in 2012 dollars)...

2012: $51,442
2011: $50,734
2010: $50,655 (trough year)
2009: $52,511
2008: $53,837
2007: $54,965
2006: $55,119 (peak year)
2005: $54,558
2004: $52,743
2003: $50,931
2002: $51,913
2001: $51,231
2000: $50,725

Source: Bureau of Labor Statistics, 2012 Consumer Expenditure Survey