trends in consumer expenditures and prices for public ...consumer expenditures on utilities for a...
TRANSCRIPT
© Janice A. Beecher, Ph.D. !INSTITUTE OF PUBLIC UTILITIES | MSU!
ipu.msu.edu | [email protected]!Please do not distribute by electronic or other means!
or cite without permission. !Revised 6/2/18!
!!!!!!!!
MICHIGAN STATE UNIVERSITY!
Trends in consumer expenditures and prices for public utilities (2018)!
IPUMSU 2018! } 2 !
IPUMSUIntroduction!§ This research summary is based on data from the Bureau of Labor Statistics of
the U.S. Department of Labor (https://www.bls.gov/data)!
§ Data are provided on both household expenditures and the consumer price index (CPI) with a focus on public utility services!
IPUMSU 2018! } 3 !
IPUMSUHousehold expenditures on utilities in the U.S.!
Electricity (2.4% of exp.), $1,829, 36%
Telephone (2.6% of exp.), $1,994, 39%
Natural gas (.6% of exp.), $443, 9%
Fuel oil and other fuels (.1% of exp.),
$89, 2%
Water and other public services (1% of exp.), $747, 14%
Consumer expenditures on utilities for a four-person household in 2016 ($5,102 and 6.6% of total household expenditures)
Source: IPU-MSU based on BLS data.
$945
$1,829
$818
$1,994
$242
$443
$61
$89
$340
$747
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Single-person Four-person
Consumer expenditures on utilities by household size (2016)
Water and other public services
Fuel oil and other fuels
Natural gas
Telephone
Electricity
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 4 !
IPUMSUHousehold expenditures on utilities over time!
$1,868
$1,820
$513 $115
$709
$0
$1,000
$2,000
$3,000
$4,000
$5,000
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Annual consumer expenditures on utilities for a four-person household ($)
Water and other public services
Fuel oil and other fuels
Natural gas
Telephone
Electricity
Source: IPU-MSU based on BLS data.
2.5%
2.4%
0.7% 0.2% 0.9%
0%
1%
2%
3%
4%
5%
6%
7%
8%
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Consumer expenditures on utilities for a four-person household (% of total expenditures)
Water and other public services
Fuel oil and other fuels
Natural gas
Telephone
Electricity
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 5 !
IPUMSUUtilities expenditures by income level and regressivity!
$1,013 $1,309 $1,436 $1,569 $1,895 $719
$1,095 $1,427
$1,752
$2,164
$220
$288
$323
$384
$558
$47
$74
$81
$88
$136
$321
$453
$550
$657
$865
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
Lowest quintile 2nd quintile 3rd quintile 4th quintile Highest quintile
Consumer expenditures on utilities by income quintile (all consumers $2016)
Water and other public services
Fuel oil and other fuels
Natural gas
Telephone
Electricity
Source: IPU-MSU based on BLS data.
4.03% 3.56% 3.01% 2.42%
1.69%
2.86% 2.98%
2.99%
2.70%
1.93%
0.88% 0.78%
0.68%
0.59%
0.50%
0.19% 0.20%
0.17%
0.14%
0.12%
1.28% 1.23%
1.15%
1.01%
0.77%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Lowest quintile 2nd quintile 3rd quintile 4th quintile Highest quintile
Consumer expenditures on utilities by income quintile (all consumers 2016%)
Water and other public services
Fuel oil and other fuels
Natural gas
Telephone
Electricity
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 6 !
IPUMSUChange in percentage of expenditures on utilities!
-0.70% -0.60% -0.50% -0.40% -0.30% -0.20% -0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70%
Lowest quintile 2nd quintile 3rd quintile 4th quintile Highest quintile
Change in percentage of consumer expenditures on utilities by income quintile (2006-2016)
Electricity
Natural Gas
Fuel oil and other fuels
Water and other public services
Telephone
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 7 !
IPUMSUTrends in expenditures by income!
4%
5%
6%
7%
8%
9%
10%
11%
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Trends in consumer expenditures on utilities by income quintile (% of total expenditures)
Lowest quintile
2nd quintile
3rd quintile
4th quintile
Highest quintile
Source: IPU-MSU based on BLS data.
$0
$30,000
$60,000
$90,000
$120,000
$150,000
$180,000
$210,000
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Income before taxes by income quintile
Lowest quintile 2nd quintile 3rd quintile 4th quintile Highest quintile
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 8 !
IPUMSUTrends in expenditures by region!
0%
5%
10%
15%
20%
25%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000 19
84
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Consumer expenditures on utilities by region
Northeast $
South $
Midwest $
West $
Northeast %
South %
Midwest %
West %
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 9 !
IPUMSUTrends in expenditures by area!
5%
10%
15%
20%
25%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000 19
84
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Consumer expenditures on utilities by area
Rural
Urban
Rural %
Urban %
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 10 !
IPUMSUTrends in expenditures by housing!
5%
10%
15%
20%
25%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000 19
84
1986
19
88
1990
19
92
1994
19
96
1998
20
00
2002
20
04
2006
20
08
2010
20
12
2014
20
16
Consumer expenditures on utillities by housing
Owners
Renters
Owners %
Renters %
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 11 !
IPUMSUCPI trends for utilities (US)!
0
50
100
150
200
250
300
350
400
450
500
550 19
78
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Trends in the Consumer Price Index (CPI) for utilities
Water & sewer (1953)
Cable/sat. television (1984)
Garbage (1985)
Postage (1935)
CPI (1983=100)
Fuel oil (1935)
Electricity (1913)
Natural gas (1935)
CPI (1997=100)
Landline tel. services (2009=100) Internet (1997=100)
Wireless (1997=100)
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 12 !
IPUMSUCPI trends for utilities (US)!
0
50
100
150
200
250
300
350
400
450
500
550
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Trends in Consumer Price Index (CPI) for utilities (general)
Water & sewer (1953)
CPI (1983=100)
Electricity (1913)
Natural gas (1935)
Telephone services (1997=100)
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 13 !
IPUMSUCPI trends for household expenditures (US)!
0
100
200
300
400
500
600
700
800
900
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Trends in CPI for major household expenditures (1983=100)
College tuition (1978)
Medical care (1935)
Food (1913)
Housing (1967)
CPI (1913, 1983=100)
Fuels and utilities (1953)
Gasoline, unl. reg. (1976)
Telephone services (1997=100)
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 14 !
IPUMSUExpenditure and price trends combined!
0
50
100
150
200
250
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000 19
84
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
CPI f
or e
lectri
city
Annu
al ho
useh
old e
xpen
ditur
es (f
amily
of f
our)
Household expenditures and CPI for electricity
Electricity expenditures (nominal)
Electricity expenditures ($2016)
Electricity CPI
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 15 !
IPUMSUExpenditure and price trends combined!
0
50
100
150
200
250
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000 19
84
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
CPI f
or n
atur
al ga
s
Annu
al ho
useh
old e
xpen
ditur
es (f
amily
of f
our)
Household expenditures and CPI for natural gas
Natural gas (nominal)
Natural gas expenditures ($2016)
Natural gas CPI
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 16 !
IPUMSUExpenditure and price trends combined!
-50
50
150
250
350
450
550
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000 19
84
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
CPI f
or w
ater
and
sewe
r main
tena
nce
Annu
al ho
useh
old e
xpen
ditur
es (f
amily
of f
our)
Household expenditures and CPI for water and sewer maintenance
Water expenditures (nominal)
Water expenditures ($2016)
Water CPI
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 17 !
IPUMSUExpenditure and price trends combined!
0
20
40
60
80
100
120
$0
$400
$800
$1,200
$1,600
$2,000
$2,400 19
84
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
CPI f
or te
lecom
mun
icatio
ns
Annu
al ho
useh
old e
xpen
ditur
es (f
amily
of f
our)
Household expenditures and CPI for telecommunictions
Telecom (nominal)
Telecom expenditures ($2016)
Telecom CPI
Source: IPU-MSU based on BLS data.
IPUMSU 2018! } 18 !
IPUMSU