Intuit Confirms Americans' Spending up 9 Percent Since 2009
Inaugural Intuit Consumer Spending Index Gives Unprecedented View into Spending Trends; Shows Growth from Gas to Gifts
MOUNTAIN VIEW, Calif. – May. 08, 2013 – U.S. consumers are spending again. After a prolonged lull following the 2008 recession's historic spending lows, consumers are now spending about nine percent more than they did just four years ago. Gasoline, gift and healthcare spending have increased significantly, and the biggest spenders are men.
These are among the findings of the new Intuit Consumer Spending Index, from Intuit Inc. (Nasdaq: INTU), which provides a unique view into the U.S. economy. The Intuit Consumer Spending Index findings are based on anonymized, aggregated, transactional data from Mint.com, Intuit's leading online and mobile personal finance software.
The key takeaway? Americans are rebounding. The average household spent approximately $4,220 per month in the first three months of 2013 compared to $3,870 during the same period in 2009. The most dramatic increases came in Arkansas and the District of Columbia - up 34 and 30 percent respectively - with the District of Columbia also spending the most per household this year at $5,144 a month. By contrast, North and South Carolina each saw spending decrease by three percent.
The Intuit Consumer Spending Index is the only report that offers a near real-time view of actual spending, rather than survey responses of what people say they spend. It does so broadly across both categories and account types; and using opt-in demographic details from millions of users, the index accurately reflects the average American household's monthly spending by age, income level, state, and more.
"We know from our Mint users that having real insight into their own spending, and being able to compare to peers helps them make better financial decisions versus getting generalized advice," said Lisa Marco Pritchard, Intuit innovation leader. "The insights from the Intuit Consumer Spending Index can extend that benefit to more consumers, give economists an invaluable and unprecedented view, and help financial institutions and other businesses better understand their customers."
Diving into the Data
By looking at all the various transactions made in more than 20 specific categories, the index shows the real-world impact of economic shifts. Analyzing spending patterns by age, state, income and gender also shows the relationship between demographic factors and individuals' spending habits. As a result, the index helps answer questions that have historically taken years to determine.
"The data we've examined here reflects a period when the country recovered from one of the most dramatic economic shifts in recent history - showing how consumers tightened, and have since loosened spending," said Scott R. Baker, Stanford University economist and the data scientist working with Intuit to develop the index. "It demonstrates how Intuit's data can show the real-world impact of macro-economic trends on how people live."
Among the insights the index reveals:
Data for the Nation; Connected Services Shed Light from the Cloud
This is the third index launched by Intuit. The monthly Intuit Small Business Employment and Revenue indexes provide a picture of the economic health of the nation's small businesses, giving those businesses a better understanding of how they are doing compared to others. With these indexes, Intuit offers a unique view into the economy based on the 45 million customers it serves who are using Intuit connected services such as Mint.com and QuickBooks small business accounting software to manage their financial lives.
Further information on the Intuit Consumer Spending Index, including additional data, charts and insights are available at: http://network.intuit.com/2013/05/08/consumer-spending-index/.
About the Intuit Consumer Spending Index
The Intuit Consumer Spending Index is based on anonymized, non-identifiable aggregated data from the more than 2 million Mint.com users who have opted to provide demographic information including age, gender, income and location. This is a subset of the nearly 13 million people who use the personal finance software. The data has been analyzed and normalized to create a statistically relevant view that better represents the average American household.
The index measures spending habits from January 2009 to April 2013, reporting the average amount spent per account each month, across various spending and demographic categories. It allocates spending into 20 sub-categories, such as groceries, restaurants, gas and others, to show how consumers spend, where they cut when times are tough, and how they have rebounded with the economy. Spending patterns are also tracked by age, location, income and gender to measure the impact that demographic factors have on an individual's spending habits.
The data tracks all consumer expenditures while excluding transactions such as transfers between financial accounts, withdrawals, deposits, income, such as paychecks or investment-related income, (including stock and rental properties, etc.) or taxes. Cash purchases are also not captured in the index, as they are not automatically tracked in Mint.com.
Customized data pulls and access to the underlying data is available upon request. To request additional access to the Intuit Consumer Spending Index please contact: firstname.lastname@example.org.
Further information on the index can be found here.
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.
Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year 2012. The company has approximately 8,500 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.
Intuit and the Intuit logo, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.
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