Methodology

How Is This Database Built?

To estimate consumer spending patterns, ESRI combines the latest (2004-2005) Consumer Expenditure (CE) Surveys from the Bureau of Labor Statistics with ESRI's Community Tapestry segmentation system.

ESRI extracts demographic and economic data for households from the quarterly Interview Survey and the weekly Diary Surveys. Data is reported by product or service and includes total expenditures, average spending per household, and a Spending Potential Index (SPI).

A conditional probability model links spending by consumers surveyed to all households with similar socioeconomic characteristics. Spending patterns are developed by Community Tapestry segments and updated to 2008 by adjusting to current levels of income. Expenditures represent the 2008 annual averages and totals.

ESRI revises the average expenditure to reflect the average amount spent per household. Total expenditure is the aggregate amount spent by all households in an area. The SPI compares the average expenditure for a product locally to the average amount spent nationally. For example, an index of 100 is average. An SPI of 120 shows that average spending by local consumers is 20 percent above the national average.

Bureau of Labor Statistics' Consumer Expenditure Survey

Consumer spending is estimated from the Consumer Expenditure (CE) Survey conducted by the Bureau of Labor Statistics (BLS). The CE Survey collects data about the buying habits of U.S. households and families and allows users of this data to relate consumer expenditures to the lifestyle behavior of those consumers. The CE Survey consists of a quarterly Interview Survey and a weekly Diary Survey, and has been administered by the BLS continuously since 1980, providing data to study consumer spending and its effect on the gross national product.

Nationally the data is used by market researchers to analyze demand for goods and services by tracking spending trends; by government and private agencies to study the welfare of particular populations, such as the elderly or low-income families; and by economic policymakers to study the impact of policy changes on various socioeconomic groups. (Read the BLS Consumer Expenditure Survey FAQ for more details.)