Consumers Stuck To Basics Last Year

Washington, DC, Oct. 7, 2009--U.S. families stuck to the basics last year when it came to spending, according to the Labor Department.

Americans cut back sharply on transportation and apparel last year, as wages failed to keep up with rising prices.

Consumer prices rose 3.8% last year from 2007, but pretax income climbed just 0.7%, or $472 an average family.

Americans cut spending in less essential categories, and favoring such thriftier options as eating at home.

Overall spending per consumer unit -- which includes families, single people or people living together who share expenses -- rose just 1.7%, or $848, in 2008 to $50,486, not adjusted for inflation, the Labor Department said Tuesday. It was the smallest spending increase since 2003.

Transportation spending, ranging from car purchases to plane tickets, fell 1.8%. Meanwhile, families spent 8.1% more on dining at home, or $279 a family.