The United States generates the second-largest amount of ecommerce sales, second only to China. In 2023, overall revenue from online purchases surpassed $1.1 trillion. 

For businesses targeting US buyers, understanding their spending patterns is paramount to effective marketing strategies. This begins with identifying regions where personal expenditures are the highest, as spending habits can vary significantly from state to state. Here’s the latest ranking of personal consumption expenditures by state to aid in crafting tailored marketing approaches.

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Consumer spending by state: 2022’s top 10

The latest data from the US Bureau of Economic Analysis shows that, in 2022, consumer spending was highest in the East Coast state of Massachusetts. That year, individuals there spent $64,214, which averages to around $5,351 a month. This figure surpasses the nationwide average expenditure of $52,542 by $11,672, marking a notable 22.2% difference.

Incidentally, the Bay State currently also tops the list ranking average income by state. Recent data from 2022 shows that individuals there earn $84,561 annually, which is approximately $7,047 per month.

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Second on the list sorting personal consumption expenditures by state is New Hampshire. People there spent a total of $60,828 (or $5,069 a month) in 2022. Another New England state, Connecticut, follows in third place, with $60,413.

Residents of California, the state with the highest number of small businesses, have the fourth-highest personal consumption expenditure. The average annual spending per capita hit $60,272 in 2022, or $5,023 per month. New Jersey rounds out the top five, with $60,082. 

Here are numbers six to 10 on this list ranking personal consumption expenditures by state:

  1. Colorado: $59,371
  2. Alaska: $59,179
  3. New York: $58,571
  4. Washington: $56,567
  5. Maine: $55,789

Consumer spending by state: 2022’s bottom five

On the other end of the list lies Mississippi, the state with the lowest consumer expenditure. In 2022, individuals there spent $39,678—24.5% less than the national average and 38.2% less than what Massachusetts residents spent. It is also the only state whose average personal expenditure was lower than $40,000 for the year.

Oklahoma and Arkansas have the second- and third-lowest annual consumer expenditures, with $42,046 and $42,245, respectively. Alabama follows, with $42,391. With the average consumer spending $43,336 in 2022, New Mexico ranks fifth from the bottom on this list comparing consumer spending by state.

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